Fed to leave rate unchanged : Analysts

Interest rates are set to remain unchanged in the United States according to analysts, when the Federal Reserve meets later this afternoon.

Markets will be watching the Fed's decision closely as a positive assessment could impact on stocks and the dollar price.

Figures released by the US Labor Department indicated that almost 100,000 jobs were lost last month.

The Federal Reserve will have to gauge whether any further cuts will impact on employment as further losses may affect consumer spending.

A survey of economists last week said the US will expand at a 4.5pc annual rate in the third quarter, up from 3.1pc in Q2 and will continue to improve into 2004.