The United States Federal Reserve has kept its benchmark interest rate unchanged at between 3.75 and 4 per cent. 

The decision comes less than a week before the US midterm elections and follows an interest rate increase at the central bank’s September meeting. Federal Reserve Chair Kevin Warsh said the measures introduced by the central bank were beginning to have an effect on the economy 

He noted that the decision to maintain the current rate would allow policymakers to assess further economic data before considering another adjustment. Interest rates influence the cost of borrowing for individuals and businesses, including loans, mortgages and credit cards, as well as the returns savers earn on their deposits. 

The Federal Reserve influences borrowing costs through its target range for the federal funds rate, which determines the rate at which commercial banks lend to one another overnight. In explaining its latest decision, the central bank said inflation remained elevated, adding that it needed more information before deciding whether to adjust interest rates again.