The Federal Reserve, which is the US central bank, has held interest rates after 10 consecutive rises.
The decision was announced a day after official figures showed US inflation was 4% – less than half the UK’s current level of 8.7%.
Latest data from the Bureau of Labor Statistics said prices rose 4% in May, the lowest pace of increases in more than two years.
Following the Fed’s announcement, US interest rates will continue to be at 5% to 5.25%, a high not previously seen since 2007.
The Fed had been increasing rates in an effort to dampen economic activity and bring price rises down to the regulator’s 2% target.
In the UK, however, inflation stood at 8.7% in April.
The slow reduction from double digit inflation and a labour market with low unemployment and rising wages has led to market expectations that the Bank of England will hike the interest rate to 5.75%.
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The Bank of England in May raised its base rate up 0.25 percentage points to 4.5%.
That expected increase has led to banks and building societies increasing their mortgage rates and pulling some mortgage products from the market in preparation for higher rates.
New information about inflation in the UK will be released by the Office for National Statistics (ONS) next Wednesday.
In the US, the interest rate is a range, rather than a single percentage – unlike the UK – because the Fed is not permitted to set a specific figure. The figures are a target rate, set to guide lenders.
Once again the Fed said the US banking system is “sound and resilient”.
“Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain,” it added.
Further rises were not ruled out.
“In determining the extent of additional policy firming that may be appropriate to return inflation to 2% over time, the [rate-setting federal open market] committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments,” the committee said.
Iran says “indirect talks” over the country’s rapidly advancing nuclear programme have taken place with US officials, with more to come next week.
The discussions on Saturday took place in Muscat, Oman, with the host nation’s officials mediating between representatives of Iran and the US, who were seated in separate rooms, according to Esmail Baghaei, a spokesperson for Iran’s foreign ministry.
After the talks concluded, Oman and Iranian officials reported that Iran and the US had had agreed to hold more negotiations next week.
Oman’s foreign minister Sayyid Badr Albusaidi tweeted after the meeting, thanking Iran’s foreign minister Abbas Araghchi and US Middle East envoy Steve Witkoff for joining the negotiations aimed at “global peace, security and stability”.
“We will continue to work together and put further efforts to assist in arriving at this goal,” he added.
(L-R) Iranian foreign minister Abbas Araghchi meets his Omani counterpart Sayyid Badr Albusaidi. Pic: Iranian foreign ministry/AP
Iranian state media claimed the US and Iranian officials “briefly spoke in the presence of the Omani foreign minister” at the end of the talks – a claim Mr Araghchi echoed in a statement on Telegram.
He added the talks took place in a “constructive atmosphere based on mutual respect” and that they would continue next week.
American officials did not immediately acknowledge the reports from Iran.
Mr Araghchi said before the meeting on Saturday there was a “chance for initial understanding on further negotiations if the other party [US] enters the talks with an equal stance”.
He told Iran’s state TV: “Our intention is to reach a fair and honourable agreement – from an equal footing.
“And if the other side has also entered from the same position, God willing, there will be a chance for an initial agreement that can lead to a path of negotiations.”
Reuters news agency said an Omani source told it the talks were focused on de-escalating regional tensions, prisoner exchanges and limited agreements to ease sanctions in exchange for controlling Iran’s nuclear programme.
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Trump on Monday: ‘We’re in direct talks with Iran’
President Donald Trump has insisted Tehran cannot get nuclear weapons.
He said on Monday that the talks would be direct, but Tehran officials insisted it would be conducted through an intermediary.
Mr Trump also warned Iran would be in “great danger” if negotiations fail.
“Hopefully those talks will be successful, it would be in Iran’s best interests if they are successful,” he said. “We hope that’s going to happen.”
He added Iran “cannot have a nuclear weapon, and if the talks aren’t successful, I actually think it will be a very bad day for Iran”.
The comments came after Mr Trump’s previous warnings of possible military action against Iran if there is no deal over its nuclear programme.
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Saturday’s meeting marked the first between the countries since Mr Trump’s second term in the White House began.
During his first term, he withdrew the US from a deal between Iran and world powers designed to curb Iran’s nuclear work in exchange for sanctions relief.
He also reimposed US sanctions.
Iran has since far surpassed that deal’s limits on uranium enrichment.
Tehran insists its nuclear programme is wholly for civilian energy purposes but Western powers accuse it of having a clandestine agenda.
Mr Witkoff came from talks with Russian president Vladimir Putin on Friday, as the US tries to broker an end to the war in Ukraine.
Palestinian student activist Mahmoud Khalil can be deported from the US, an immigration judge has ruled.
Mr Khalil, a postgraduate student at Columbia University’s school of international and public affairs, has been a prominent figure in the university’s pro-Palestinian student protest movement.
The 30-year-old has held a US permanent residency green card since 2024 and his wife is a US citizen.
Mahmoud Khalil. Pic: AP
Mr Khalil was detained at his Columbia apartment building in Manhattan on 8 March, as agents from the Department of Homeland Security (DHS) told him his student visa had been revoked.
It marked the first arrest in President Donald Trump’s crackdown on students who joined campus protests against the war in Gaza.
Mr Khalil, who acted as a mediator between protesters and university officials during pro-Palestinian demonstrations at New York’s Columbia University last year, is not accused of breaking any laws.
But the Trump administration says noncitizens who participate in demonstrations like he has should be expelled from the country for expressing views that the administration considers to be antisemitic and “pro-Hamas”.
On Friday, immigration judge Jamee E Comans ruled that the government had the right to deport him, saying its belief that his presence posed “potentially serious foreign policy consequences” was enough to satisfy requirements for his deportation.
Mr Khalil, centre, surrounded by reporters outside the Columbia University campus in April last year. Pic: AP
He said the government had “established by clear and convincing evidence that he is removable”.
Mr Khalil’s lawyers have said they plan to fight the ruling via the Board of Immigration Appeals and can also pursue an asylum case on his behalf.
The judge gave them until 23 April to seek a waiver.
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His lawyer Marc van der Hout said after the ruling: “Today, we saw our worst fears play out: Mahmoud was subject to a charade of due process, a flagrant violation of his right to a fair hearing, and a weaponisation of immigration law to suppress dissent.”
Mr Khalil, who was born in a Palestinian refugee camp in Syria and holds Algerian citizenship, remains in the Louisiana immigration detention centre where federal authorities transferred him after his arrest.
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His defence team has said it is seeking a preliminary injunction from the federal court in New Jersey, which would release him from custody and could block the Trump administration from arresting and detaining people for supporting Palestinian people in Gaza.
The Trump administration has been cracking down on pro-Palestinian protesters at universities across the country.
After his arrest last month, the president said: “This is the first arrest of many to come. We know there are more students at Columbia and other universities across the country who have engaged in pro-terrorist, anti-Semitic, anti-American activity, and the Trump administration will not tolerate it.”
There have also been protests over the arrest of Mr Khalil, including by a Jewish group against the war in Gaza who stormed Trump Tower in New York last month.
Local police said 98 were arrested on charges including trespassing, obstruction and resisting arrest.
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