All eyes on the BoE as Federal Reserve holds rates at 22-year high
The Fed's rate-setting committee said The committee said leaving rates unchanged would give the central bank to continue to assess additional information and its implications for monetary policy.
The move came as widely expected by the markets, leaving the central bank's rate target at 5.25%-5.5%, a 22-year high and bolstering expectations that the Bank of England will also maintain rates later today (2 November).
This came despite the US economy exceeding with strong job growth and economic expansion, but the inflation rate remains above the Fed's 2% target.
In a statement on Wednesday (1 November), the Fed said the decision to hold rates had been unanimous, adding that the rate-setting committee would be prepared to adjust the stance of monetary policy «as appropriate» if risks emerge.
US GDP beats expectations at 4.9% in Q3
The committee also said that leaving rates unchanged would give the central bank to continue to assess additional information and its implications for monetary policy.
The Fed also said it would be taking into account the «cumulative tightening of monetary policy», the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.
In a press conference, chair Jerome Powell said a few months of strong economic data is «only the beginning» of gaining confidence that inflation is heading towards its target, adding that the process of getting inflation down to target has «a long way to go».
«Despite elevated inflation, longer-term inflation expectations appear to remain well anchored, as reflected in a broad range of surveys of households, businesses, and forecasters, as well as measures from financial markets,» he said.
Seema Shah, chief global
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