The Federal Reserve left short-term interest rates unchanged on Wednesday, marking the third straight meeting the U.S. central bank has held rates steady in 2016.
In its April monetary policy statement, the Federal Open Market Committee kept the target range on its benchmark Federal Funds Rate unchanged at a level between 0.25 and 0.50%.The FOMC abandoned a seven-year zero interest rate policy in December, by lifting the Fed Funds Rate by 25 basis points, the first rate hike by the Fed in nearly a decade.
The Fed expressed confidence at the continued improvements in the labor market, but remained cautious amid low inflation in the last few months. As oil prices hover near multi-year lows and the dollar remains markedly above its 2014 levels, long-term inflation has fallen under the Fed's 2% objective in every month over the last three years.
According to the FOMC statement, "Economic activity appears to have slowed. Growth in household spending has moderated, although households' real income has risen at a solid rate and consumer sentiment remains high."
RBNZ
On the other side of the globe, the Reserve Bank of New Zealand left the Official Cash Rate unchanged at 2.25 percent, pointing to deterioration in global growth over recent months due to weaker conditions in China and other emerging markets.
New Zealand’s economy is being supported by construction activity, increased inward migration, tourism, and accommodative monetary policy. Dairy export prices have improved slightly, but are below break-even levels for most farmers.
BOJ
The Bank of Japan also left its main policy unchanged Thursday, against pressure calls from the markets for more stimulus from the markets, keeping its asset purchase target at 80 trillion yen ($718 billion) a year, a measure aimed at putting more money into circulation to stimulate growth and inflation. The BOJ’s also left unchanged a deposit rate of minus 0.1% — charged on some deposits held by commercial banks. The sub-zero rates went into effect in February as part of increased efforts by Tokyo to stimulate economic activity and price growth by driving down various borrowing costs.