The Federal Reserve has left interest rates on hold and also lowered projections for how much these rates will escalate in the coming years.

Fed Chairwoman Janet Yellen said that “We are quite uncertain about where rates are heading in the longer term.”


Nonetheless, the US central bank has hinted that it still laid out plans of two rate increases this 2016.

The Fed lowered its growth projection for this year to 2% from previously 2.2%, and its outlook for incoming 2017 to 2% from 2.1%.

Fed officials also claimed that the Brexit referendum held next week is a factor in its verdict to keep interest rates stable for now.

BoJ, SNB Follow Fed, Worry over Brexit

Meanwhile, the Bank of Japan and the Swiss National Bank followed the Fed’s footsteps and put their respective interest rates on hold.

Both the central bank chiefs of Japan and Switzerland agreed with Jane Yellen’s worries over the global economy and the conclusion of Britain’s referendum set in June 23, which will decide on the country’s membership in the European Union.


The Brexit is counted as a key factor in the central banks’ rate hike decision due to the fact that it could negatively impact not only the British economy and trade, but global financial market conditions as well. Traders in London are preparing for all-nighters after polls close late on June 23.

On Thursday, an Ipsos MORI telephone poll presented that 53% of Britons voted ‘Leave’. It was the first time in the monthly survey that the Leave campaign gained majority of the votes and followed a series of polls released this week that reveal the vote to remain in the bloc is losing ground.

The Bank of England was also not predicted to make any changes in its rates in Thursday’s later session. The central bank was also anticipated to weigh in on the risks and consequences of the upcoming vote in the publication of its meeting minutes.

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