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Interest Rate Hike

US inflation likely remained sticky-high last month, threatening rate cuts

US inflation probably worsened last month on the back of higher prices for gas, eggs, and used cars, a trend that could make it less likely that the Federal Reserve will cut its key interest rate much this year. On Wednesday the Labour Department is expected to report that in December the consumer price index rose 2.8% from a year ago, according to economists surveyed by FactSet, up from a 2.7% yearly increase in November. It would be the third straight rise, after inflation fell to a 3 1/2 year low of 2.4% in September. The uptick could fuel ongoing concerns among many economists and in financial markets that inflation has gotten stuck above the Fed's 2% target. Such concerns have sent interest rates on Treasury securities higher, which has also pushed up borrowing costs for mortgages, cars, and credit cards, even as the Fed has cut its key rate. Last Friday's unexpectedly strong jobs report caused stock and bond prices to plunge on fears that a healthy economy could keep inflation

US inflation likely remained sticky-high last month, threatening rate cuts
Updated On : 15 Jan 2025 | 2:51 PM IST

RBI to introduce new benchmark SORR based on secured money markets

Secured Overnight Rupee Rate (SORR), will be developed with the support of Financial Benchmarks India Limited (FBIL), which has been requested to take the proposal forward

RBI to introduce new benchmark SORR based on secured money markets
Updated On : 06 Dec 2024 | 7:44 PM IST

Sebi proposes interest rate derivatives for hedging by REITs and InvITs

Markets regulator Sebi has proposed allowing Real Estate Investment Trusts (REITs), Small and Medium REITs (SM REITs) and Infrastructure Investment Trusts (InvITs) to use interest rate derivatives for hedging risk. Also, the regulator has suggested approving locked-in units for REITs and InvITs to be transferred among sponsors and their groups, similar to rules for promoters in listed companies, to help sponsors manage their holdings without compromising "skin in the game". Additionally, Sebi has suggested permitting fixed deposits to be considered as cash equivalents when calculating leverage for REITs and InvITs, clarifying credit rating requirements for REIT and InvIT borrowings, and setting a timeline for filling vacancies on their boards and expanding the asset base for REITs and SM REITs. The regulator has also proposed to permit REITs to invest in liquid mutual funds. It has suggested measures to facilitate ease of doing business for REITs and InvITs, along with investors' .

Sebi proposes interest rate derivatives for hedging by REITs and InvITs
Updated On : 03 Nov 2024 | 10:58 AM IST

US job growth seen picking up in Aug; unemployment rate easing to 4.2%

'The economy is going through a transition; it's slowly kind of bending under the weight of the high interest rates,' said Brian Bethune, an economics professor at Boston College

US job growth seen picking up in Aug; unemployment rate easing to 4.2%
Updated On : 06 Sep 2024 | 7:02 PM IST

Why is Japan reviving debate on higher tax on income from investment

The flat-rate tax system helps lower the overall burden for high-income earners, who tend to earn more through investments

Why is Japan reviving debate on higher tax on income from investment
Updated On : 06 Sep 2024 | 11:20 AM IST

Bank of Japan policymaker urges caution regarding interest rate hikes

The BOJ's plan to keep raising rates comes at a time when many other central banks are beginning to ease policy

Bank of Japan policymaker urges caution regarding interest rate hikes
Updated On : 05 Sep 2024 | 2:00 PM IST

Indian rupee likely to miss Fed pivot-fueled emerging market rally

The move was in line with the rupee's recent underperformance as the currency has failed to gain from the dollar's broad slump

Indian rupee likely to miss Fed pivot-fueled emerging market rally
Updated On : 26 Aug 2024 | 3:02 PM IST

B'desh to tame inflation by interest rate hike of 9% in coming days: Report

Bangladesh Bank's new governor, Ahsan H. Mansur, appointed just a week ago, also said that he would raise interest rates further to 10 per cent or more in the coming months

B'desh to tame inflation by interest rate hike of 9% in coming days: Report
Updated On : 22 Aug 2024 | 2:50 PM IST

$6.4 trn stock wipeout has traders fearing the start of a 'great unwind'

Whether Monday's wild gyrations mark the final bang of a global selloff that started to build last week or signal the beginning of a protracted slump is impossible to know

$6.4 trn stock wipeout has traders fearing the start of a 'great unwind'
Updated On : 06 Aug 2024 | 9:37 AM IST

HDFC Bank rolls out fixed deposit scheme with higher interest rates

The bank has indicated that it will grow its advances slower than its deposits to bring down its elevated credit-deposit ratio

HDFC Bank rolls out fixed deposit scheme with higher interest rates
Updated On : 26 Jul 2024 | 12:33 AM IST

EU Central Bank rates seen firmly on hold, but door to Sept cut still open

Analysts say the rate-setting council will leave a decision on lower rates for the September meeting, after an initial quarter-percentage point cut at the June 6 meeting

EU Central Bank rates seen firmly on hold, but door to Sept cut still open
Updated On : 18 Jul 2024 | 1:47 PM IST

What explains Japanese government's non intervention to support yen?

Massive interest rate differentials between the U.S. and Japan have been weighing the yen down, putting monetary policy at the centre of the currency's woes

What explains Japanese government's non intervention to support yen?
Updated On : 11 Jul 2024 | 11:09 AM IST

ECB's next interest rate cut easy decision before choices become hard

ECB cut rates in early June but made no commitment about any further moves, arguing inflation was still too high

ECB's next interest rate cut easy decision before choices become hard
Updated On : 02 Jul 2024 | 12:42 PM IST

Unity Bank hikes savings account interest rate: offers interest up to 7.75%

On Fixed Deposits, Unity Bank continues to offer an interest rate of 9.50% p.a. to senior citizens

Unity Bank hikes savings account interest rate: offers interest up to 7.75%
Updated On : 24 Jun 2024 | 6:10 PM IST

BoE may keep interest rate at 16-yr high of 5.25% despite inflation fall

Any hopes the governing Conservative Party may have of the Bank of England cutting its main interest rate from a 16-year high of 5.25 per cent Thursday are expected to be dashed even though inflation in the UK has fallen to its target rate for the first time in nearly three years. Official figures on Wednesday showed that inflation, as measured by the consumer prices index, fell to 2 per cent in the year to May from 2.3 per cent the month before, with food prices providing the biggest downward contribution. That's the first time since July 2021 that inflation has been at the bank's target. Despite the welcome decline, some policymakers on the bank's Monetary Policy Committee appear to be still concerned over the scale of price increases in the crucial services sector and the pace of wage increases, which raise the risks of an inflation rebound if interest rates are cut too soon. That is why an interest rate cut tomorrow is still very unlikely, said Luke Bartholomew, deputy chief ..

BoE may keep interest rate at 16-yr high of 5.25% despite inflation fall
Updated On : 20 Jun 2024 | 12:34 PM IST

Reserve Bank of India to delay interest rate cut to late this year: Poll

With near-8 per cent growth, the fastest among major world economies, and above-trend inflation there is also little urgency for the RBI to begin cutting rates unless concerns emerge about a slowdown

Reserve Bank of India to delay interest rate cut to late this year: Poll
Updated On : 31 May 2024 | 10:35 AM IST

Bank of Japan's underlying inflation measures all fall below 2% in April

The weighted median inflation rate, among the three indicators closely watched as a gauge on whether price rises are broadening

Bank of Japan's underlying inflation measures all fall below 2% in April
Updated On : 28 May 2024 | 11:40 AM IST

Goldman Sachs ups India 2024 GDP forecast to 6.7%; sees RBI rate cut in Q4

RBI's MPC has sounded caution on sticky food inflation, Goldman Sachs says, owing to supply-side disruptions due to the ongoing hot weather conditions in many parts of India

Goldman Sachs ups India 2024 GDP forecast to 6.7%; sees RBI rate cut in Q4
Updated On : 27 May 2024 | 6:15 PM IST

BOJ board turned hawkish in April, many saw need for more rate hikes

The debate underscores BOJ Governor Kazuo Ueda's recent remarks signalling the chance of multiple rate hikes ahead, and heightens the possibility of an increase in short-term borrowing costs

BOJ board turned hawkish in April, many saw need for more rate hikes
Updated On : 09 May 2024 | 9:44 AM IST

Bank of England's rate cut plan set to differ from Federal Reserve's

Ahead of Thursday's decision, Governor Andrew Bailey has distanced Britain from resurgent consumer price pressures in the US, pointing to strong evidence of UK inflation receding

Bank of England's rate cut plan set to differ from Federal Reserve's
Updated On : 05 May 2024 | 10:16 PM IST