US rates hold steady

Amanda Jarvis

May 8, 2002

UK property owners hoping for a long stretch at 4 per cent may have been cheered by the US Federal Reserve’s decision to keep interest rates on hold yesterday.

The US Federal Reserve unanimously voted to keep rates at 1.75 per cent, increasing the likelihood that the Bank of England will do the same at its monthly meeting tomorrow.

Despite 11 US cuts last year a spokesman from the Federal Reserve said weak demand was likely to be a problem for some time to come, despite low borrowing rates. Market watchers took this to mean that US rate hikes anytime soon are looking increasingly unlikely.

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