- Fed holds rates steady at 5-5.25 per cent but signals more hikes to come
- 25 basis point hike takes the ECB’s main deposit rate to 3.5 per cent
In a move described as a "hawkish pause", the Federal Reserve left interest rates unchanged on Wednesday but signalled that more increases are yet to come.
The decision marks the end of a run of ten consecutive interest rate hikes, yet policymakers were at pains to stress that it did not mark the end of the hiking cycle. Fed chair Jerome Powell said that nearly all committee participants "view it as likely that some further rate increases will be appropriate this year”. Interest rate projections released alongside the meeting implied two further rate hikes, followed by a full percentage point of rate cuts in 2024.