Cayman Borrowing Rates Rise as US Fed Hikes Interest Rate

Cayman's high street banks have quickly responded to the US Federal Reserve's interest rate increase, announcing that borrowing rates here will rise from 6.75% to 7% on Friday.

The decision by the US Federal Open Market Committee to raise its benchmark interest rate to a range of 3.75% to 4% has been met with an expected impact on local families and businesses, as this rate is used as a benchmark by banks in the Cayman Islands.

Experts expect another rate increase this year, which may further exacerbate the cost of living crisis in the country.