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The benchmark interest rate in the United States was last recorded at 4.25 percent. This dataset provides the latest reported value for - United States Fed Funds Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.
The U.S. federal funds effective rate underwent a dramatic reduction in early 2020 in response to the COVID-19 pandemic. The rate plummeted from 1.58 percent in February 2020 to 0.65 percent in March, and further decreased to 0.05 percent in April. This sharp reduction, accompanied by the Federal Reserve's quantitative easing program, was implemented to stabilize the economy during the global health crisis. After maintaining historically low rates for nearly two years, the Federal Reserve began a series of rate hikes in early 2022, with the rate moving from 0.33 percent in April 2022 to 5.33 percent in August 2023. The rate remained unchanged for over a year, before the Federal Reserve initiated its first rate cut in nearly three years in September 2024, bringing the rate to 5.13 percent. By December 2024, the rate was cut to 4.48 percent, signaling a shift in monetary policy in the second half of 2024. In January 2025, the Federal Reserve implemented another cut, setting the rate at 4.33 percent, which remained unchanged until September 2025, when another cut set the rate at 4.22 percent. What is the federal funds effective rate? The U.S. federal funds effective rate determines the interest rate paid by depository institutions, such as banks and credit unions, that lend reserve balances to other depository institutions overnight. Changing the effective rate in times of crisis is a common way to stimulate the economy, as it has a significant impact on the whole economy, such as economic growth, employment, and inflation. Central bank policy rates The adjustment of interest rates in response to the COVID-19 pandemic was a coordinated global effort. In early 2020, central banks worldwide implemented aggressive monetary easing policies to combat the economic crisis. The U.S. Federal Reserve's dramatic reduction of its federal funds rate - from 1.58 percent in February 2020 to 0.05 percent by April - mirrored similar actions taken by central banks globally. While these low rates remained in place throughout 2021, mounting inflationary pressures led to a synchronized tightening cycle beginning in 2022, with central banks pushing rates to multi-year highs. By mid-2024, as inflation moderated across major economies, central banks began implementing their first rate cuts in several years, with the U.S. Federal Reserve, Bank of England, and European Central Bank all easing monetary policy.
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Graph and download economic data for FOMC Summary of Economic Projections for the Fed Funds Rate, Median (FEDTARMD) from 2025 to 2028 about projection, federal, median, rate, and USA.
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The benchmark interest rate in India was last recorded at 5.50 percent. This dataset provides - India Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.
The inflation rate in the United States declined significantly between June 2022 and July 2025, despite rising inflationary pressures towards the end of 2024. The peak inflation rate was recorded in June 2022, at *** percent. In August 2023, the Federal Reserve's interest rate hit its highest level during the observed period, at **** percent, and remained unchanged until September 2024, when the Federal Reserve implemented its first rate cut since September 2021. By January 2025, the rate dropped to **** percent, signalling a shift in monetary policy. What is the Federal Reserve interest rate? The Federal Reserve interest rate, or the federal funds rate, is the rate at which banks and credit unions lend to and borrow from each other. It is one of the Federal Reserve's key tools for maintaining strong employment rates, stable prices, and reasonable interest rates. The rate is determined by the Federal Reserve and adjusted eight times a year, though it can be changed through emergency meetings during times of crisis. The Fed doesn't directly control the interest rate but sets a target rate. It then uses open market operations to influence rates toward this target. Ways of measuring inflation Inflation is typically measured using several methods, with the most common being the Consumer Price Index (CPI). The CPI tracks the price of a fixed basket of goods and services over time, providing a measure of the price changes consumers face. At the end of 2023, the CPI in the United States was ****** percent, up from ****** a year earlier. A more business-focused measure is the producer price index (PPI), which represents the costs of firms.
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The benchmark interest rate in Canada was last recorded at 2.50 percent. This dataset provides - Canada Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.
Canada's inflation rate experienced significant fluctuations from 2018 to 2025. Inflation peaked at *** percent in June 2022 before steadily declining to *** percent by December 2024. In early 2025, inflation began to increase again, rising to *** percent in February, and dropping to *** percent in March. In response to rising inflation between 2020 and 2022, the Bank of Canada implemented aggressive interest rate hikes. The bank rate reached a maximum of **** percent in July 2023 and remained stable until June 2024. As inflationary pressures eased in the second half of 2024, the central bank reduced interest rates to *** percent in December 2024. In 2025, the bank rate witnessed two cuts, standing at ***** percent in August 2025. This pattern reflected broader global economic trends, with most advanced and emerging economies experiencing similar inflationary challenges and monetary policy adjustments. Global context of inflation and interest rates The Canadian experience aligns with the broader international trend of central banks raising policy rates to combat inflation. Between 2021 and 2023, nearly all advanced and emerging economies increased their central bank rates. However, a shift occurred in the latter half of 2024, with many countries, including Canada, beginning to lower rates. This change suggests a new phase in the global economic cycle and monetary policy approach. Notably, among surveyed countries, Russia maintained the highest interest rate in early 2025, while Japan had the lowest rate. Comparison with the United States The United States experienced a similar trajectory in inflation and interest rates. U.S. inflation peaked at *** percent in June 2022, slightly higher than Canada's peak. The Federal Reserve responded with a series of rate hikes, reaching **** percent in August 2023. This rate remained unchanged until September 2024, when the first cut since September 2021 was implemented. In contrast, Canada's bank rate peaked at **** percent and began decreasing earlier, with cuts in June and July 2024. These differences highlight the nuanced approaches of central banks in managing their respective economies amid global inflationary pressures.
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The benchmark interest rate In the Euro Area was last recorded at 2.15 percent. This dataset provides - Euro Area Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.
The U.S. bank prime loan rate has undergone significant fluctuations over the past three decades, reflecting broader economic trends and monetary policy decisions. From a high of **** percent in 1990, the rate has seen periods of decline, stability, and recent increases. As of July 2025, the prime rate stood at *** percent, marking a notable rise from the historic lows seen in the early 2020s. Federal Reserve's impact on lending rates The prime rate's trajectory closely mirrors changes in the federal funds rate, which serves as a key benchmark for the U.S. financial system. In 2023, the Federal Reserve implemented a series of rate hikes, pushing the federal funds target range to ******** percent by year-end. This was followed by several rate cuts in 2024, with the target range standing at 4.25 to 4.5 percent in December 2024. The aggressive monetary tightening in 2023 was aimed at combating rising inflation, and its effects rippled through various lending rates, including the prime rate. Long-term investment outlook While short-term rates have risen, long-term investment yields have also seen changes. The 10-year U.S. Treasury bond, a benchmark for long-term interest rates, showed an average market yield of **** percent in the second quarter of 2024, adjusted for constant maturity and inflation. This figure represents a recovery from negative real returns seen in 2021, reflecting shifting expectations for economic growth and inflation. The evolving yield environment has implications for both borrowers and investors, influencing decisions across the financial landscape.
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The benchmark interest rate in the United Kingdom was last recorded at 4 percent. This dataset provides - United Kingdom Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.
Between January 2018 and July 2025, the United Kingdom's consumer price inflation rate showed notable volatility. The rate hit its lowest point at 0.5 percent in August 2020 and peaked at 9.6 percent in October 2022. By September 2024, inflation had moderated to 2.6 percent, but the following months saw inflation increase again, and it remained on a slightly upward trajectory in the first half of 2025. The Bank of England's interest rate policy closely tracked these inflationary trends. Rates remained low at 0.5-0.75 percent until April 2020, when they were reduced to 0.1 percent in response to economic challenges. A series of rate increases followed, reaching a peak of 5.25 percent from August 2023 to July 2024. The central bank then initiated rate cuts in August and November 2024, lowering the rate to 4.75 percent, signaling a potential shift in monetary policy. In February 2025, the Bank of England implemented another rate cut, setting the bank rate at 4.5 percent, which was further reduced to 4.25 percent in May 2025. Global context of inflation and interest rates The UK's experience reflects a broader international trend of rising inflation and subsequent central bank responses. From January 2022 to July 2024, advanced and emerging economies alike increased their policy rates to counter inflationary pressures. However, a shift began in late 2024, with many countries, including the UK, starting to lower rates. This change suggests a potential new phase in the global economic cycle and monetary policy approach. Comparison with other major economies The UK's monetary policy decisions align closely with those of other major economies. The United States, for instance, saw its federal funds rate peak at 5.33 percent in August 2023, mirroring the UK's rate trajectory. Similarly, central bank rates in the EU all increased drastically between 2022 and 2024. These synchronized movements reflect the global nature of inflationary pressures and the coordinated efforts of central banks to maintain economic stability. As with the UK, both the U.S. and EU began considering rate cuts in late 2024, signaling a potential shift in the global economic landscape.
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According to our latest research, the global Interest Rate Futures market size reached USD 5.8 trillion in 2024, reflecting a robust and sustained appetite for risk management and speculative opportunities in global financial markets. The market is projected to grow at a CAGR of 7.2% from 2025 to 2033, reaching an estimated USD 10.8 trillion by 2033. This growth is primarily driven by increasing volatility in global interest rates, a rising demand for effective hedging instruments, and expanding participation from institutional investors, banks, and hedge funds. As per our latest research, the market is witnessing a structural transformation fueled by technological advancements, regulatory reforms, and the globalization of financial markets, making interest rate futures an indispensable tool for risk management and investment strategies worldwide.
One of the most significant growth factors for the Interest Rate Futures market is the heightened volatility and unpredictability of global interest rates. Central banks across major economies have been actively adjusting their monetary policies in response to inflationary pressures, economic recovery post-pandemic, and geopolitical uncertainties. These frequent changes in interest rates have created an urgent need for market participants to manage their exposure to interest rate risks. As a result, both institutional and retail investors are increasingly turning to interest rate futures as a cost-effective and efficient means to hedge against adverse movements in interest rates. The ability of these instruments to offer standardized contracts, deep liquidity, and transparent pricing further enhances their appeal, driving greater adoption across diverse market segments.
Technological innovation is another critical driver propelling the expansion of the Interest Rate Futures market. The proliferation of advanced trading platforms, algorithmic trading, and real-time data analytics has significantly improved market accessibility and operational efficiency. Exchange-traded and over-the-counter platforms are now equipped with sophisticated risk management tools, automated execution capabilities, and enhanced security features that cater to the evolving needs of institutional investors, banks, and hedge funds. These technological advancements have lowered entry barriers, increased trading volumes, and fostered greater market participation from a broader spectrum of end-users. Additionally, the integration of artificial intelligence and machine learning in trading strategies is enabling market participants to identify and capitalize on arbitrage opportunities with unprecedented speed and accuracy.
Regulatory reforms and the globalization of financial markets are also playing an instrumental role in shaping the growth trajectory of the Interest Rate Futures market. Regulatory bodies across North America, Europe, and Asia Pacific are emphasizing greater transparency, risk mitigation, and investor protection in derivatives trading. The implementation of stringent margin requirements, centralized clearing, and reporting standards has enhanced market integrity and reduced systemic risks. Furthermore, the liberalization of capital markets in emerging economies and cross-border collaboration among exchanges are facilitating the seamless flow of capital and expanding the reach of interest rate futures to new geographies. These regulatory and structural developments are creating a more resilient and inclusive market ecosystem, supporting sustained growth over the forecast period.
From a regional perspective, North America continues to dominate the Interest Rate Futures market, accounting for the largest share in both trading volumes and open interest. This dominance is attributed to the presence of well-established exchanges, a mature financial infrastructure, and a diverse base of institutional investors. Europe and Asia Pacific are also witnessing robust growth, driven by regulatory harmonization, the introduction of new contract types, and the increasing participation of global investors. Latin America and the Middle East & Africa are emerging as promising markets, supported by ongoing financial sector reforms and the gradual adoption of derivatives trading. The regional outlook remains positive, with each region contributing uniquely to the overall expansion of the market.
The Contract Type segment of the Intere
According to the latest research conducted in 2025, the global Interest Rate Options Market size reached USD 12.8 billion in 2024, demonstrating robust activity across major financial centers. The market is expected to expand at a CAGR of 7.2% from 2025 to 2033, reaching a projected value of USD 23.9 billion by the end of the forecast period. This growth trajectory is primarily driven by increasing volatility in global interest rates, the need for sophisticated risk management tools, and the growing participation of institutional investors in derivatives trading. As per our latest research, the market’s expansion is underpinned by a surge in demand for customized financial instruments to hedge against interest rate fluctuations and capitalize on arbitrage opportunities.
One of the key growth factors propelling the Interest Rate Options Market is the heightened uncertainty in global macroeconomic conditions, which has led to significant fluctuations in interest rates across developed and emerging economies. Central banks’ monetary policy shifts, the ongoing recalibration of inflation expectations, and geopolitical tensions have collectively contributed to increased volatility in the fixed income markets. As a result, corporations, asset managers, and hedge funds are increasingly turning to interest rate options such as caps, floors, collars, and swaptions to manage risk exposure and protect their portfolios from adverse rate movements. This dynamic is further reinforced by the growing sophistication of financial institutions and the availability of advanced analytics, which enable market participants to model and execute complex hedging strategies with greater precision.
Another important driver for the Interest Rate Options Market is the rapid evolution of trading platforms and technology infrastructure. The proliferation of electronic trading systems, coupled with the rising adoption of algorithmic trading, has enhanced market transparency, reduced transaction costs, and significantly improved execution speed for interest rate options. Exchange-traded platforms are witnessing increased activity due to their standardized contracts and clearing mechanisms, which mitigate counterparty risk. Simultaneously, the over-the-counter (OTC) segment remains vital for bespoke and large-volume transactions, offering tailored solutions to institutional clients. The convergence of digitalization, regulatory reforms, and market innovation is expected to further accelerate growth in both exchange-traded and OTC segments, fostering a more dynamic and resilient derivatives ecosystem globally.
Furthermore, the expansion of the Interest Rate Options Market is strongly influenced by the growing participation of non-traditional end-users, including corporates and asset managers. These entities are increasingly leveraging interest rate derivatives not only for hedging but also for yield enhancement and speculative purposes. The integration of interest rate options into broader portfolio management strategies allows for more effective risk-adjusted returns, especially in environments characterized by low or negative interest rates. Additionally, the development of new product variants and the entry of fintech firms are broadening market access, democratizing the use of interest rate options among mid-sized enterprises and institutional investors alike. This trend is expected to sustain high demand and foster innovation throughout the forecast period.
From a regional perspective, North America remains the dominant market for Interest Rate Options, accounting for the largest share of global trading volumes in 2024. The region’s leadership is underpinned by the presence of major financial hubs, advanced market infrastructure, and a deep pool of institutional investors. Europe follows closely, benefiting from an integrated capital market and strong regulatory frameworks that support derivatives trading. Meanwhile, the Asia Pacific region is emerging as a high-growth market, driven by financial market liberalization, rising cross-border capital flows, and increasing sophistication among local investors. Latin America and the Middle East & Africa are also witnessing gradual uptake, albeit from a lower base, as local financial institutions seek to enhance their risk management capabilities and participate more actively in global derivatives markets.
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According to our latest research, the global interest rate swaps market size reached USD 12.4 trillion in 2024, with a robust compound annual growth rate (CAGR) of 6.8% projected through the forecast period. By 2033, the market is forecasted to attain a value of USD 24.1 trillion. This remarkable growth is primarily driven by increased volatility in global interest rates, a heightened need for risk management tools among financial institutions, and the rising complexity of corporate financial strategies.
A significant growth factor for the interest rate swaps market is the ongoing volatility in global interest rates, which has prompted both financial institutions and corporations to seek sophisticated hedging instruments. Central banks around the world have adopted divergent monetary policies in response to inflationary pressures and economic uncertainties, which has led to increased fluctuations in benchmark rates. As a result, organizations are turning to interest rate swaps to manage their exposure, lock in borrowing costs, and stabilize cash flows. The growing demand for risk mitigation tools is further amplified by the unpredictable macroeconomic environment, making interest rate swaps an essential component of modern financial risk management.
Another pivotal driver is the evolution of regulatory frameworks and financial market infrastructure, which has enhanced transparency and accessibility in the interest rate swaps market. The implementation of regulations such as the Dodd-Frank Act in the United States and EMIR in Europe has encouraged the migration of swaps trading to centralized clearinghouses and electronic trading platforms. This shift has not only reduced counterparty risk but also improved price discovery and operational efficiency. The increasing adoption of technology-driven trading systems, alongside the digitization of financial services, is making interest rate swaps more accessible to a broader array of market participants, including mid-sized corporates and institutional investors.
Furthermore, the expansion of the interest rate swaps market is supported by the globalization of financial markets and the diversification of end-users. Multinational corporations, government entities, and even non-banking financial institutions are leveraging swaps to optimize their capital structures and manage cross-border exposures. The proliferation of new swap products, such as basis swaps and forward swaps, has enabled market participants to implement more complex and tailored risk management strategies. As financial markets become increasingly interconnected, the demand for flexible and customizable interest rate derivatives is expected to continue its upward trajectory.
Regionally, North America and Europe remain dominant due to their mature financial markets and robust regulatory frameworks. However, the Asia Pacific region is emerging as a significant growth engine, propelled by rapid financial sector development, increased cross-border capital flows, and the liberalization of interest rate regimes in key economies like China and India. Latin America and the Middle East & Africa are also witnessing steady growth, albeit from a smaller base, as financial markets in these regions continue to evolve and integrate with global capital markets.
The interest rate swaps market can be segmented by type into Over-the-Counter (OTC) and Exchange-Traded swaps. OTC swaps have historically dominated the market, accounting for the majority of global notional outstanding due to their flexibility and customization options. Financial institutions and large corporates prefer OTC swaps as they allow for bespoke contract terms tailored to specific hedging requirements. The depth and liquidity of the OTC market have enabled participants to execute large and complex transactions efficiently, making it an indispensable segment for risk management and speculative strategies.
However, the landscape is gradually shifting with the rise of exchange-traded interest rate swaps. Regulatory reforms, particularly in the aftermath of the global financial crisis, have encouraged the migration of standardized swap contracts to regulated exchanges and central clearinghouses. Exchange-traded swaps offer enhanced transparency, reduced counterparty risk, and improved operational efficiency, which are particularly attr
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The Finance sector's operating environment was previously characterised by record-low interest rates. Nonetheless, high inflation prompted the Reserve Bank of Australia (RBA) to hike the cash rate from May 2022 onwards. This shift allowed financial institutions to impose higher loan charges, propelling their revenue. Banks raised interest rates quicker than funding costs in the first half of 2022-23, boosting net interest margins. However, sophisticated competition and digital disruption have reshaped the sector and nibbled at the Big Four's dominance, weighing on ADIs' performance. In the first half of 2025, the fierce competition has forced ADIs to trim lending rates even ahead of RBA moves to protect their slice of the mortgage market. Higher cash rates initially widened net interest margins, but the expiry of cheap TFF funding and a fierce mortgage war are now compressing spreads, weighing on ADIs' profitability. Although ANZ's 2024 Suncorp Bank takeover highlights some consolidation, the real contest is unfolding in tech. Larger financial institutions are combatting intensified competition from neobanks and fintechs by upscaling their technology investments, strengthening their strategic partnerships with cloud providers and technology consulting firms and augmenting their digital offerings. Notable examples include the launch of ANZ Plus by ANZ and Commonwealth Bank's Unloan. Meanwhile, investor demand for rental properties, elevated residential housing prices and sizable state-infrastructure pipelines have continued to underpin loan growth, offsetting the drag from weaker mortgage affordability and volatile business sentiment. Overall, subdivision revenue is expected to rise at an annualised 8.3% over the five years through 2024-25, to $524.6 billion. This growth trajectory includes an estimated 4.8% decline in 2024-25 driven by rate cuts in 2025, which will weigh on income from interest-bearing assets. The Big Four banks will double down on technology investments and partnerships to counter threats from fintech startups and neobanks. As cybersecurity risks and APRA regulations evolve, financial institutions will gear up to strengthen their focus on shielding sensitive customer data and preserving trust, lifting compliance and operational costs. In the face of fierce competition, evolving regulations and shifting customer preferences, consolidation through M&As is poised to be a viable trend for survival and growth, especially among smaller financial institutions like credit unions. While rate cuts will challenge profitability within the sector, expansionary economic policies are poised to stimulate business and mortgage lending activity, presenting opportunities for strategic growth in a dynamic market. These trends are why Finance subdivision revenue is forecast to rise by an annualised 1.1% over the five years through the end of 2029-30, to $554.9 billion
The real interest rate in Malaysia was 7.33 percent in 2023. Between 1969 and 2023, the real interest rate rose by 3.29 percentage points, though the increase followed an uneven trajectory rather than a consistent upward trend.
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The benchmark interest rate in Australia was last recorded at 3.60 percent. This dataset provides - Australia Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.
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Most animals experience temperature variations as they move through the environment. For ectotherms in particular, temperature has a strong influence on habitat choice. While well-studied at the species level, less is known about factors affecting the preferred temperature of individuals. Especially lacking is information on how physiological traits are linked to thermal preference and whether such relationships are affected by factors such feeding history and growth trajectory. This study examined these issues in the common minnow Phoxinus phoxinus, to determine the extent to which feeding history, standard metabolic rate (SMR) and aerobic scope (AS), interact to affect temperature preference. Individuals were either: 1) food-deprived for 21 days, then fed ad libitum for the next 74 days; or 2) fed ad libitum throughout the entire period. All animals were then allowed to select preferred temperatures using a shuttle-box, and then measured for SMR and AS at 10°C, estimated by rates of oxygen uptake. Activity within the shuttle-box under a constant temperature regime was also measured. In both food-deprived and control fish, SMR was negatively correlated with preferred temperature. The SMR of the food-deprived fish was elevated compared to the controls, probably due to the effects of compensatory growth, and so these growth-compensated fish preferred temperatures that were on average 2.85°C cooler than controls fed a maintenance ration throughout the study. Fish experiencing compensatory growth also displayed a large reduction in activity. In growth-compensated fish and controls, activity measured at 10°C was positively correlated with preferred temperature. Individual fish prefer temperatures that vary predictably with SMR and activity level, which are both plastic in response to feeding history and growth trajectories. Cooler temperatures probably allow individuals to reduce maintenance costs and divert more energy towards growth. A reduction in SMR at cooler temperatures, coupled with a decrease in spontaneous activity, would also allow individuals to increase surplus aerobic scope for coping with environmental stressors. In warming climates, however, aquatic ectotherms could experience frequent fluctuations in food supply with long-lasting effects on metabolic rate due to compensatory growth, while simultaneously having limited access to preferred cooler habitats.
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Companies in the Investment Banking industry provide financial advisory services, offering their insight on IPOs, M&As and equity and debt security underwriting activity. Competition has been fierce in recent years, with a flood of boutique firms entering the industry as bankers look for healthier rewards than those offered by the more regulated larger investment banks. Growing M&A and IPO activity before 2022-23 ramped up demand for investment banking services, although this momentum lost speed in 2022-23 as access to cheap capital ended. Revenue is expected to contract at a compound annual rate of 8.1% over the five years through 2025-26 to £8 billion, including an expected drop of 0.5% in 2025-26. Profit is also expected to edge downwards in 2025, though it remains high. Capital market activity surged at the height of the COVID-19 pandemic, lifting demand for investment banking services as governments and large international businesses across the world raised capital to fund fiscal stimuli and maintain cash flow levels. The boom in debt and equity markets showed no sign of slowing the next year, with IPO and M&A activity reaching record levels in 2021-22, driving demand for investment bankers’ services. However, in the two years through 2023-24, M&A activity plummeted thanks to rising interest rates, mounting geopolitical tensions and a gloomy economic outlook, which put companies off from seeking takeovers. In 2024-25, M&A activity fared better than IPOs, welcoming improvements in consumer confidence amid interest rate cuts, aiding revenue growth. However, IPOs continued on their downward trajectory as geopolitical uncertainty and high interest rates resulted in many companies delaying listings. Over 2025-26, M&A activity is forecast to continue to climb, but IPO activity may stall as Trump's tariff announcements erode investor sentiment, weighing on revenue growth. Revenue is anticipated to grow at a compound annual rate of 4.5% over the five years through 2030-31 to £10 billion. Deal activity is set to build as lower interest rates make leveraged transactions more attractive. Competition will remain fierce, driving technological innovation as investment banks try to improve decision-making processes and scale operations through the use of AI. Still, strong competition from overseas exchanges, like the S&P 500 in the US, will dent UK IPO activity in the coming years as companies move away from UK listings and the lacklustre valuations they offer, weighing on revenue growth.
The inflation rate in the United States is expected to decrease to 2.1 percent by 2029. 2022 saw a year of exceptionally high inflation, reaching eight percent for the year. The data represents U.S. city averages. The base period was 1982-84. In economics, the inflation rate is a measurement of inflation, the rate of increase of a price index (in this case: consumer price index). It is the percentage rate of change in prices level over time. The rate of decrease in the purchasing power of money is approximately equal. According to the forecast, prices will increase by 2.9 percent in 2024. The annual inflation rate for previous years can be found here and the consumer price index for all urban consumers here. The monthly inflation rate for the United States can also be accessed here. Inflation in the U.S.Inflation is a term used to describe a general rise in the price of goods and services in an economy over a given period of time. Inflation in the United States is calculated using the consumer price index (CPI). The consumer price index is a measure of change in the price level of a preselected market basket of consumer goods and services purchased by households. This forecast of U.S. inflation was prepared by the International Monetary Fund. They project that inflation will stay higher than average throughout 2023, followed by a decrease to around roughly two percent annual rise in the general level of prices until 2028. Considering the annual inflation rate in the United States in 2021, a two percent inflation rate is a very moderate projection. The 2022 spike in inflation in the United States and worldwide is due to a variety of factors that have put constraints on various aspects of the economy. These factors include COVID-19 pandemic spending and supply-chain constraints, disruptions due to the war in Ukraine, and pandemic related changes in the labor force. Although the moderate inflation of prices between two and three percent is considered normal in a modern economy, countries’ central banks try to prevent severe inflation and deflation to keep the growth of prices to a minimum. Severe inflation is considered dangerous to a country’s economy because it can rapidly diminish the population’s purchasing power and thus damage the GDP .
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The benchmark interest rate in the United States was last recorded at 4.25 percent. This dataset provides the latest reported value for - United States Fed Funds Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.