Page 10 - Interest Rate Hike

Expect 25-bp hike before RBI presses pause button

The rate-increase cycle, which started in May 2022, raising the policy rate from 4 to 6.25 per cent to fight entrenched inflation, is nearing its end

Certainly, uncertainty has declined

Over the past year, global macroeconomic stability has improved, which sets the stage for good growth from 2024

RBI Monetary Policy: One last rate hike now but signaling close to the peak

Inflation remains sticky and most G-10 central banks may in any case, continue with rate hikes; given India's resilient growth momentum, the MPC might increase the repo rate one final time

Bank of Canada hikes policy interest rate by 25 basis points to 4.5%

The bank conducted eight consecutive interest rate hikes since March 2022 and added 425 basis points in total to tackle inflation

Prioritising stability over growth

The backdrop of the Budget augurs well for the government, but a closer look calls for a cautious approach

Bank of Maharashtra raises rates on term deposits after union appeal

Senior citizens will be offered an additional rate of 0.5% per annum for all maturity slabs

Bank of Maharashtra employees' union for term deposit rate hike

Writes to management, says bank losing deposits to other lenders

Oil prices stable as market awaits clarity on US Fed interest rate hike

A weaker dollar can boost demand for oil, as dollar-denominated commodities become cheaper for holders of other currencies

Bank of Baroda increases MCLR from 8.3% to 8.5% effective January 12

Marginal cost of funds-based lending rate (MCLR) is the minimum interest rate below which a bank cannot lend, except in certain cases

Employee union urges Bank of Maharashtra to hike rates on term deposits

Company is losing balances in savings as well as fixed deposits to competitors, it says

Bulls stage turnaround on Monday; key reasons why Sensex rallied 850 pts

The market sentiment got a boost from jobs and services data in the US, which hinted at a cooling economy prompting bullish bets from investors

Europe stumbles as firm Fed not cutting interest rates amid China rally

Markets are clearly being tugged in different directions though

High portfolio yields to make debt funds an attractive option in 2023

Investors could also get the benefit of capital gains this year

Israel's central bank raises interest rate to 3.75%, highest since 2008

This is the seventh consecutive rise in the base interest rate in Israel since April 2022 when the figure then stood at 0.1 per cent, reports Xinhua news agency

Central banks may reverse rate hikes in 2023 to escape slowdown: SBI

Financial markets in 2022 have remained volatile and edgy with the central banks globally in unison in a rate hike cycle

Sensex, Nifty set to gain for seventh straight year; smallcaps underperform

The underperformance of the small-caps, according to analysts, was mostly due to rising raw material prices and the hike in rates by central banks, which in turn impacted their financial performance

Slowdown year

Global and domestic factors will affect output

Housing sales in top-7 cities up 54%, top previous high of 2014: Anarock

Current sales momentum is likely to continue in first quarter of 2023; most of the sales are driven by end-users

World economy is headed for recession in 2023 amid rate hikes: Research

That institution warned in October that more than a third of the world economy will contract and there is a 25% chance of global GDP growing by less than 2% in 2023

How to lock smartly into bank FDs as rates peak over next 2-3 quarters

Consider laddering to ensure liquidity and to avoid reinvestment risk