The US Federal Reserve has left interest rates unchanged, stating that they will remain “exceptionally low” for an “extended period”.  Apparently, although the labour market is stabilising and business spending is up they are wary of killing off the recovery, especially as inflation remains subdued.

Will the Bank of England follow this example?  The return of VAT to 17.5% and rising petrol prices are putting pressure on UK inflation so one supposes that only time will tell.

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