You are using an older browser version. Please use a supported version for the best MSN experience.

US central bank keeps rates on hold

BBC News BBC News 27/04/2016
Federal Reserve © Getty Images Federal Reserve

The US Federal Reserve has kept interest rates between 0.25% and 0.5%, the rate its held since December.

The Fed said while conditions have improved, the central bank is still waiting for inflation to reach 2%.

The central bank did point to strengthening in the labour market and improved household spending, as a positive signs.

Most investors expected rates to remain on hold, and were looking for changes to the Fed's assessment of the economy.

The Fed is expected to raise rates only twice in 2016. Its next chance to raise rates will be when it meets in June.

As it has said in all its recent statements, the Fed's Open Market Committee insisted that monetary policy remained flexible.

"The committee continues to closely monitor inflation indicators and global economic and financial developments," it said.

Inflation and the job market have been the two key factors in the Fed's decision to raise rates.

In its statement the Fed said low oil prices and poor exports early in the year had contributed to weak inflation.

More From BBC News

image beaconimage beaconimage beacon