Markets around the world were essentially on hold in the lead up to the Federal Open Markets Committee (FOMC) March meeting. A 25bps rise was expected to provide only the third such rise since 2009. It would also provide confirmation the rate-raising part of the cycle markets had well and truly begun.
The FOMC has since announced it has raised the target range for its official rate, known as the federal funds rate, from 0.50%-0.75% to 0.75%-1.00%. Until two weeks ago, markets had not placed much weight on a rate rise at the March meeting of the FOMC. However, a string of speeches and interviews by Fed Reserve officials, including chief Janet Yellen, quickly convinced markets such a rise was indeed likely.
