• US Federal Reserve votes to keep interest rates unchanged

Commenting on the US Federal Reserve’s interest rates decision, David Kern, BCC Chief Economist, said:

“The turmoil in financial markets seen in recent weeks highlights the risks around a premature tightening of monetary policy.

“While domestic indicators in the US justified the small increase in rates announced by the Fed last month, the weakness of economies around the globe and recent market jitters have rightly put further tightening on hold for the foreseeable future.

“In the UK, where the economic cycle is some way behind that of the US, the argument for keeping rates on hold has been reinforced by recent developments. Governor Carney was right to state that now is not the time to consider higher interest rates.”