The U.S. Federal Reserve decided Thursday to leave a key interest rate unchanged at 5.25 percent, where it has stood for a year.
This was the eighth consecutive time that the central bank held the federal funds rate, interest commercial banks charge each other on overnight loans, steady at 5.25 percent since late June 2006.
After boosting rates at its 17 regular policy-setting meetings in a row over two years, the Fed paused in August last year and left rates alone in September, October, December, January, March and May.
As a result of the Thursday decision, commercial banks' prime lending rate, the benchmark for millions of consumer and business loans, will remain at 8.25 percent. The prime rate responds to changes in the federal funds rate.
The decision was widely expected by economists even though government data showed that the economy had slowed down significantly in the first three months. The tiny 0.7 percent rate was much slower than the 2.5 percent pace in the previous quarter.
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