US Federal bank keeps rates unchanged

Washington Nov 2: The Federal Reserve Bank oF USA kept interest rates unchanged on Wednesday and said that solid US economic growth and a strengthening labor market while playing down the impact of recent hurricanes.Sources say that the bank may lift the borrowing costs in December.

Fed committee in its statement has said that "the labor market has continued to strengthen and economic activity has been rising at a solid rate despite hurricane-related disruptions".



The bank has also said that "inflation remained soft but did not downgrade their assessment of pricing expectations."

The central bank held its benchmark interest rate target between 1 percent and 1.25 percent. Fed already has raised rates twice this year so that a steady monetary policy could be maintained.The stock markets have rallyed after the decision was announced yesterday.