The US Federal Reserve has held interest rates between 3.5% and 3.75% for the fifth time in a row, a decision that was broadly expected by markets.
Key facts
- The Federal Reserve held US interest rates for the fifth consecutive time.
- Rates remain between 3.5% and 3.75%.
- The decision was broadly expected, according to the BBC.
- The Fed chair said there is 'no magic wand' to tackle high prices.
- The Bank of England is also expected to hold its rate at 3.75%, the lowest since February 2023.
The US Federal Reserve has decided to keep interest rates unchanged, marking the fifth hold in a row, according to the BBC. The move leaves rates in a range between 3.5% and 3.75%.
The decision was broadly expected by observers, the BBC reported, suggesting little surprise among markets ahead of the announcement.
Speaking after the decision, the Fed chair said there was ‘no magic wand’ to tackle high prices, underlining the challenge policymakers face in bringing inflation under control while supporting the wider economy.
The steady stance from the Fed comes as central banks elsewhere weigh similar decisions. The Bank of England is also expected to hold interest rates again, according to the BBC, which would be its fifth hold in a row.
If the Bank of England does hold, its rate would stand at 3.75% — the lowest since February 2023, the BBC reported. This would place the UK’s benchmark rate broadly in line with the upper end of the Fed’s current range.
The repeated holds on both sides of the Atlantic point to a cautious approach among central bankers, who appear reluctant to move rates sharply while the outlook for prices remains uncertain.
Why it matters
Interest rate decisions directly affect the cost of borrowing for households and businesses, from mortgages to loans. When central banks hold rates steady, it signals they are weighing the risks of inflation against the need to support economic growth, and the outcome shapes everyday financial decisions for millions of people.
Frequently asked questions
What are US interest rates now?
According to the BBC, US interest rates remain between 3.5% and 3.75% following the Federal Reserve's decision to hold for the fifth consecutive time.
What did the Fed chair say about prices?
The Fed chair said there is 'no magic wand' to tackle high prices, according to the BBC.
Is the Bank of England expected to change rates?
The Bank of England is expected to hold rates again, which would be its fifth hold in a row, leaving the Bank rate at 3.75% — the lowest since February 2023, according to the BBC.