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Fed votes to keep US interest rates below 0.5%


The US Federal Reserve has announced it will maintain interest rates between 0.25 an 0.50 per cent.

Last night the US central bank said short-term risks to the economy had reduced, but that inflation was still below its 2 per cent target, according to the BBC.

The Federal Reserve calculates US inflation rates at 1.6 per cent.

A statement by the Federal Open Market Committee blames low energy prices for the drag on inflation.

The group also says household spending was growing and that unemployment had fallen for the last two months.

Investors expect the Fed to raise rates later in the year, with the first increase coming in autumn.



Banks warn businesses to prepare for negative interest rates

Natwest and Royal Bank of Scotland have written to business customers warning they may have to charge them to hold desposits as a result of low global interest rates. This would signal the first time UK banks to introduce negative interest rates, the BBC reports. The letter, sent to 1.3 million combined business and commercial […]


Fed set to hold rates until Brexit impacts become clear

The US Federal Reserve is set to keep interest rates on hold until it understands the repercussions of the UK’s vote to leave the European Union, minutes from its June meeting published this week reveal. Minutes of the Fed’s June policy meeting, which was held before the June 23 referendum, says: “Members generally agreed that before […]

Does Fed rate hike mark the beginning of currency wars?

Emerging markets face a tough time following the Federal Reserve’s decision to increase interest rates from historic lows. While markets breathed a sigh of relief following the news that the Federal Open Market Committee had hiked rates, investors remained cautious of the implications for emerging markets. Woodford Investment Management head of investment Neil Woodford says: […]


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