The Federal Reserve – the US central bank – has opted not to increase its base interest rate.
Ahead of the UK’s own knife-edge interest rate decision on Thursday, the move in the US could potentially influence the Bank of England.
The cost of borrowing had been brought to a 22-year high at the last interest rate meeting in July after a brief pause in the Fed’s programme of rate rises.
The US central bank had increased rates in an effort to make borrowing money more expensive in order to bring down inflation.
Inflation in the United States stood at 3.7% in the year up to September, above the Fed’s 2% goal and a slight but continued increase from the two-year low of 3% recorded for June.
In the UK, the Bank of England could keep the base interest rate at 5.25% after 14 consecutive rises.
Its latest decision is due at 12pm on Thursday.
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US interest rates stand at 5.25% to 5.5%. In the US, the interest rate is a range, rather than a single percentage – unlike the UK – because the Fed does not set a specific figure.
Instead, the figures are a target rate to guide lenders.
