New York, May 4 (IANS): The US Federal Reserve has approved its 10th interest rate hike in 14 months, increasing its key interest rate by 0.25 percentage points.

The Fed also signalled that Wednesday's hike may be its last one for now, BBC reported.

The rate hikes have sharply raised borrowing costs across the world's largest economy, spurring a slowdown in sectors such as housing and playing a role in the recent failures of three US banks, the report said.

The moves have pushed the target range for its benchmark rate to 5 per cent to 5.25 per cent, up from near zero in March 2022, the highest level since 2007, BBC reported.

Higher interest rates make it more expensive to buy a home, borrow to expand a business or take on other debt. By increasing those costs, officials expect demand to fall and prices to cool off, BBC reported.

Price increases in the US have shown signs of moderating ever since the Fed started its campaign. In March, inflation, the rate at which prices rise, stood at 5 per cent - the lowest level in nearly two years - though still uncomfortably high for the Fed, which is targeting a 2 per cent rate, BBC reported.