Fed's move adds to economic stability

The US Federal Reserve's decision to keep the federal funds rate unchanged will contribute to China's economic stability as it may dampen expectation for faster yuan appreciation and speculative capital inflows and help anchor domestic inflation, economists said.

The Fed announced in its latest policy statement issued Wednesday that the central bank had left the level of interest that banks charged each other unchanged at 2 percent.

Although economists are divided on how long the Fed will stick to the current policy and where the US economy will head, there are signals that the central bank has become more confident in the US economic development, said Zhuang Jian, senior economist with the Asian Development Bank in Beijing. If the US economy stabilizes, China's exports would benefit, he said.