Interest Rates Stay Unchanged for Fifth Straight Time

January 31, 2007 No Comments »

The Federal funds rate was left unchanged at 5.25% citing a relatively strong economy, measured growth, and fewer inflation worries, the Fed reported.

The decision was spurred by data that revealed the economy had grown faster than expected in 2006, and that there some tentative signs of a possible housing recovery, or at least a chance of some stability.

In 2006 the US economy grew 3.4%, ahead of 2005’s 3.2% expansion.

US gross domestic product (GDP) rose at an annual rate of 3.5% from October to December, the biggest quarterly increase since the start of 2006.

The rate decision was decided by a unanimous 11-0 vote of the Federal Open Market Committee.

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