Federal Reserve Holds US Interest Rates at 5% to 5.25% After 10 Consecutive Rises

The decision was made after official figures showed US inflation was 4%, less than half the UK's current level of 8.7%.

The Bank of England raised its base rate to 4.5% in May, and banks have increased mortgage rates in preparation for higher rates.

The Fed stated that the US banking system is "sound and resilient" and that further rises were not ruled out, but the extent of their impact on the economy is uncertain.

The Fed's target rate guides lenders, and inflation in the UK will be released next Wednesday.