Fed Rate leaves interest rates unchanged

It would have been the first change since 2007

(Getty Images)

The US Federal Reserve announced on Thursday it was leaving interest rates unchanged - citing concerns about global economic developments.

The reserve referred to global concerns, a possible reference to recent issues over China's economy. Fed Chairwoman Janet Yellen is due to hold press conference later on Thursday to explain the decision.

There had been widespread anticipation in recent days that interest would be raised, an indication of confidence about the state of the US's economy and an admission that the world economy was no longer in an emergency situation.

But on Thursday morning - ahead of the decision - other analysts said they suspected concern about the situation outside of the US lead the reserve to hold rates unchanged.

Fed officials, who had held a a two-day meeting, indicated they had taken the decision because inflation was running well below their 2 per cent objective and "recent global economic and financial developments may restrain economic activity somewhat."

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