6 Aug 2008

Fed holds rate steady

8:04 am on 6 August 2008

The Federal Reserve held US interest rates steady on Tuesday.

The decision to leave the benchmark federal funds rate target at a 2%, was 10-1. The rate has been 2% since April.

Lone dissenter, Richard Fisher, the president of the Federal Reserve Bank of Dallas, wanted a rate increase.

The Fed has reduced rates by a cumulative 3.25 percentage points since mid-September.

The Bank of England is due to announce its rate verdict on Thursday and is expected to stay on hold. It is currently 5%.

Meanwhile, the Reserve Bank of Australia has signalled the possibility of a cut in interest rates in the coming months due to a rapid economic slowdown.

The RBA on Wednesday left rates unchanged at 7.25%.