Question: What were the interest rates in 2023 (USA)?
Updated in September 2023.
Interest rates in 2023 were influenced by global central banks to contain the biggest inflation outbreak in four decades.
What were the Federal Funds Rate in 2023?
The Federal Funds Rate is the interest rate at which banks lend reserve balances to other banks on an overnight basis. It is a key indicator of the state of the U.S. economy and is often adjusted in response to changing economic conditions.
In 2023 as of September, the Federal Funds Rate was adjusted several times. Here is a list of the adjustments:
- July 26, 2023: Increase of +25 basis points, moving from 5.25% to 5.50%
- May 3, 2023: Increase of +25 basis points, moving from 5.00% to 5.25%
- March 22, 2023: Increase of +25 basis points, moving from 4.75% to 5.00%
- February 1, 2023: Increase of +25 basis points, moving from 4.50% to 4.75%
These adjustments were made in response to keep inflation in check.
What were the Personal Loan Interest Rates in 2023?
The interest rate on personal loans at banks for a 24-month loan remained steady in 2023. According to Federal Reserve Economic Data, the rate was 11.48% in February and remained at 11.48% in May.
What were the Credit Card Interest Rates in 2023?
The interest rate on credit cards saw a slight increase in 2023. According to Federal Reserve Economic Data, the rate was 20.09% in February and increased to 20.68% in May.
Average inflation rate (CPI) during 2023
The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. In August 2023, the CPI was 3.7%, indicating a moderate level of inflation. This rate of inflation can influence interest rates, as lenders may increase rates to maintain their purchasing power in the face of rising prices.
Source notes: Finance Rate on Personal Loans at Commercial Banks, 24 Month Loan (Source Federal Reserve Economic Data), Commercial Bank Interest Rate on Credit Card Plans All Accounts (Source Federal Reserve Economic Data), Inflation rate according to Federal Reserve Economic Data (CPI for All Urban Consumers: All Items in U.S. City Average, Percent Change from Year Ago. Annual, Not Seasonally Adjusted)
