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Zero rate policy comes with a cost

Savers, who are starved for yield, subsidise borrowers.

The US Federal Reserve kept interest rates unchanged on Wednesday and in a direct reference to its next meeting put a December rate hike in play. The Fed has risked missing a window of opportunity; particularly by overly focusing not only on the currently low levels of inflation, but also recent international developments.

ON Oct 28, the Federal Reserve's Federal Open Market Committee provided a statement that while broadly in line with prior communications, provides some additional hints at the Committee's thinking on initial rate lift-off.

Specifically, the Fed maintained its focus on external "global