The Federal Open Market Committee (FOMC) has said that it will continue to monitor financial and economic developments in the US, and will act in the required manner to promote price stability.

This is the target the committee has set itself following the announcement that interest rates in America will remain at two percent this month. Citizens in debt may be among those who welcome the fact that the cost of borrowing has not risen for this month.

Various economic commentators had predicted that the FOMC would keep rates unchanged and "some firming in household spending" was partly responsible for yesterday's decision.

Announcing its verdict, the monetary policy group acknowledged that energy prices have increased of late and said that labor markets have softened.

"Tight credit conditions, the ongoing housing contraction and the rise in energy prices are likely to weigh on economic growth over the next few quarters," the committee stated.

Federal Reserve chairman of two-and-a-half years Ben S Bernanke and vice chairman Timothy F Geithner were among the board members to vote for no change in rate.

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