Question: What were the interest rates in 1995?
Interest rates in 1995 were influenced by various economic events. The Federal Reserve, which sets the Federal Funds Rate, made adjustments based on economic indicators such as inflation, unemployment, and GDP growth.
What were the Federal Funds Rate in 1995?
According to the Federal Reserve Bank of St. Louis, the Federal Funds Rate in 1995 started at 5.5%. The rate was adjusted three times during the year:
- In February, the rate was increased to 6.0%.
- In July, the rate was increased again to 5.75%.
- In December, the rate was lowered to 5.5%.
These adjustments were made in response to changes in economic conditions. The rate increases in February and July were aimed at controlling inflation, while the rate decrease in December was intended to stimulate economic growth.
What were the Personal Loan Interest Rates in 1995?
The interest rates on personal loans at banks for a 24-month loan in 1995, according to the Federal Reserve Economic Data, were as follows:
- In February, the rate was 14.10%.
- In May, the rate decreased slightly to 14.03%.
- In August, the rate decreased further to 13.84%.
- In November, the rate was 13.80%.
What were the Credit Card Interest Rates in 1995?
The interest rates on credit cards in 1995, according to the Federal Reserve Economic Data, were as follows:
- In February, the rate was 16.10%.
- In May, the rate increased slightly to 16.14%.
- In August, the rate decreased to 15.92%.
- In November, the rate was 15.81%.
Average inflation rate (CPI) during 1995
According to the Federal Reserve Economic Data, the average inflation rate in 1995 was 2.54%. This rate is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
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)
