The US Federal Reserve has kept interest rates unchanged for the second time in a row, in line with most expectations, to remain at a level between 5.25 and 5.5 percent, the highest in 22 years.

The central bank said in a statement that its decision to keep interest rates unchanged gives policymakers time "to assess additional information and its implications for monetary policy."

The US central bank stopped raising interest rates last September and kept them unchanged, after increasing them 11 times since March 2022, as part of the Fed's attempts to curb inflation.

The Fed's statement left the door open for borrowing costs to increase again, acknowledging the strength of the U.S. economy, but also pointing to the tougher financial conditions faced by businesses and households.

Market Performance

By 14:30 GMT, the Dow Jones Industrial Average was up 332.45 points, or 1.00 percent, at 33,607.03.

The S&P 500 rose 56.03 points, or 1.34 percent, to 4,293.88.

The Nasdaq Composite rose 159.15 points, or 1.22 percent, to 13,221.37.