US interest rates held for fifth time in a row
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US interest rates have been held for the fifth time in a row by the Federal Reserve
The decision, which was broadly expected, means rates remain between 3.5% and 3.75%
Higher interest rates make borrowing more expensive for people wanting to secure loans, mortgages and credit cards, but can lead to better returns on savings
Policymakers decided to keep rates at the level they have been all year after inflation, the rate at which prices rise, slowed last month, but concerns remain that the dip could prove short-lived
Despite inflation falling to 3.5% in the year to June, the rate prices are rising at remains above the Fed’s 2% target
There is also growing uncertainty over the impact of the ongoing conflict in the Middle East on global oil prices and subsequently general consumer prices in the coming months
Policymakers at the US central bank voted 9-3 in favour of keeping interest rates on hold. The three who voted against were pushing instead for a small hike, with speculation ahead of the decision that an increase in the rate was on the cards due to renewed hostilities between the US and Iran pushing up global oil prices
The Fed acknowledged that inflation remained “elevated” which it said was in part due to energy price increases
US Federal Reserve
Inflation
US economy
