Fed Move To Benefit Emerging Markets

The decision by the central bank's policy-making Federal Open Market Committee had been widely expected and left the key federal funds rate that commercial banks charge each other for overnight money unchanged at 5.25 per cent.

After growing at its fastest pace in two years in the second quarter, the economy looks to have slowed recently..

By keeping rates steady, the Fed has given an indirect boost to emerging market assets, which should see a continued inflow of foreign capital in search of higher yields.

Steady US monetary policy should mean that mainstream US investors