The U.S. Federal Reserve on Tuesday raised its benchmark interest rate by a quarter-point to 3 per cent in its eighth-straight rate rise. It added that future hikes would come at a "measured" pace to douse a flare-up in inflation. The increase by the central bank's Federal Open Market Committee upped the overnight borrowing rate between banks to its highest level since October 2001, DPA said. The rise was largely expected, but what was in question was the wording of the committee's statement and its clues on future rate hikes. The committee retained the wording for "measured" increases, dampening concerns of higher rate hikes down the road and expressing confidence that the central bank will be able to keep inflation in check without harming economic growth. "With underlying inflation expected to be contained, the committee believes that policy accommodation can be removed at a pace that is likely to be measured," the statement said. --More 2259 Local Time 1959 GMT
