US interest rate remain same

The Federal Reserve has decided to keep US interest rates on hold at between 0 % and 0.25 %, as had been widely expected. Despite continuing signs that the US economy is recovering, the central bank reiterated that rates would stay at the low level for an " extended period". The Fed's hand was strengthened by official data showing earlier on Wednesday that US inflation remains under control. Inflation rose by just 0.4 % in November, as had also been predicted. With inflation continuing to be low, the Fed is not under pressure to increase interest rates as a means to tackle any inflationary pressure. Instead, it can keep the cost of borrowing low to help the US economy continue to rebound. Separate official US figures on Wednesday indicated that the economic recovery remains on track. The Commerce Department said the current account deficit rose 10.3 % to $108 bn (£66 bn) between July and September, as demand for overseas goods among US consumers increased. Meanwhile, new home construction for November grew by 8.9 % to an annual rate of 574 ,000 units. The most recent official figures showed that the US economy grew at an annual pace of 2.8 % during the third quarter, down from an initial estimate of a 3.5 % expansion.