Page 4 - Interest Rate Hike

Europe's inflation held steady in Aug as CenBank keeps open mind on rates

Annual inflation held steady in Europe in August as food prices raced ahead of falling fuel costs, but there was no clarity about whether the European Central Bank can pause its record series of interest rate hikes. The consumer price index for the 20 countries that use the euro currency was unchanged at 5.3 per cent from the July reading, supported by food, alcohol and tobacco prices that increased a painful 9.8 per cent, according to official figures Thursday from EU statistics agency Eurostat. Another key inflation number so-called core inflation that leaves out volatile fuel and food also eased in August, falling to 5.3 per cent from 5.5 per cent. That figure will be a key consideration for the ECB in deciding whether interest rates need to go higher, or can remain unchanged to judge their impact on the economy. Fuel prices fell 3.3 per cent amid flat global oil prices and diminished summer demand for heating fuel. European Central Bank President Christine Lagarde has said t

RBL Bank increases savings account interest rates up to 150 basis points

For daily balances between Rs 25 lakh to Rs 2 crore, bank will pay 7.5 per cent (per annum) as against 7.0 per cent rate

Are equity markets pricing in rupee weakness and related risks?

Analysts say equity markets will begin baking in the negatives and weakness in the rupee if the US Fed chief Jerome Powell delivers a hawkish commentary at Jackson Hole later this week

SBI Fund Management turns to cash on bets RBI will hike rates further

The assessment makes it one of the very few money mangers to call for a rate increase, with most market players just pushing back the rate-cut bets to later next year

China's central bank cuts interest rate again as property slump spreads

Stocks in Hong Kong, where many of China's biggest companies trade, fell more than 1 percent Monday, while shares in mainland China were down about 0.50 per cent

China urges banks to boost loans to support recovery, cut debt risks

Major financial institutions, especially big state-owned banks, must increase loan disbursements and avoid big fluctuations in lending

IT, HDFC Bank, M&M send Sensex 202 pts down; Adani Ent gains 4%, RIL 1%

Stock Market LIVE: IT pocket led losses on the Sensex with HCL Tech, TCS, Wipro, Tech M and Infosys falling up to 1.2 per cent

Russia central bank jacks up key interest rate by 350 basis points to 12%

Russia's central bank on Tuesday made a large interest rate hike of 3.5 percentage points, an emergency move designed to fight inflation and strengthen the ruble after the country's currency reached its lowest value since early in the war with Ukraine. The decision to bring the key rate to 12% was announced after a meeting of the bank's board of directors was called Monday as the ruble declined. The fall comes as Moscow increases military spending and Western sanctions weigh on its energy exports. The Russian currency passed 101 rubles to the dollar on Monday and lingered there Tuesday, losing more than a third of its value since the beginning of the year and hitting the lowest level in almost 17 months. The central bank says demand has exceeded the country's ability to expand economic output, increasing inflation and affecting the ruble's exchange rate dynamics through elevated demand for imports. Consequently, the pass-through of the ruble's depreciation to prices is gaining ...

RBI may tighten cash conditions, but it's unlikely to hike CRR: Traders

The banking system liquidity surplus has averaged around Rs 2.5 trillion ($30.19 billion) in August, up from Rs 1.6 trillion in July

Italy proposes bank tax to help people with rate hikes, stocks plunges

Italian bank stocks plunged Tuesday after the Cabinet approved a proposal to apply a 40% tax on some bank profits this year to help consumers and businesses cope with higher borrowing costs. Transport Minister Matteo Salvini announced the tax at a Monday evening press conference, saying it was a measure of social equity to make up for a series of interest rate hikes from the European Central Bank. Those increases are aimed at fighting inflation and make it more expensive for people to get loans to buy homes and cars or for companies to get new equipment or build facilities. UniCredit shares fell over 7%, Intesa Sanpaolo was down more than 8%, Banco BPM dropped more than 8.5%, and BPER and Banca MPS both plummeted over 10% in early afternoon trading on the Milan Stock Exchange. The Association of Italian Banks has not yet commented publicly on the tax, whose approval apparently took banks by surprise. Analysts said banks would surely try to change the proposal or challenge it in cou

Expect status quo, both for rate and policy stance

RBI has committed to remain nimble in its liquidity management, ensuring adequate resources are available for growth and orderly completion of govt's record Rs 15.43 tn market borrowing programme

RBI may continue to hold rate amid concern over inflation: Experts

The Reserve Bank is likely to continue with the pause on the key interest rate at its upcoming monetary policy review, as concerns on the inflation front and keeping the borrowing cost stable to maintain the economic growth momentum persist, said experts. The RBI Governor-headed six-member Monetary Policy Committee's (MPC) meeting is scheduled on August 8-10. The policy decision will be announced on August 10 by Governor Shaktikanta Das. The borrowing cost, which started rising in May last year, has stabilised with the RBI keeping the repo rate unchanged at 6.5 per cent since February when it was raised from 6.25 per cent. Later, in the two bi-monthly policy reviews in April and June, the benchmark rate was retained. Punjab & Sind Bank Managing Director Swarup Kumar Saha said the RBI factors in many things, including global developments. So, it will also take into account interest rate hikes effected by many central banks like the US Fed recently. Due to interest rate increases, ..

Europe economy shows modest growth after months of stagnation as rate hikes

The European economy grew modestly in the most recent quarter, breaking out of a months of stagnation or contraction as higher interest rates designed to fight inflation make it more expensive for households and businesses to borrow, invest and spend. The 20 countries that use the euro currency and their 346 million people saw 0.3% growth in the April-to-June period, the EU statistics agency Eurostat reported Monday. That's an improvement over zero growth in the first quarter of this year and a slight decline in fourth quarter of last year, but not by much. A revision raised figures for the first quarter from a decline of 0.1%, wiping out two straight quarters of declining output. Inflation in the eurozone, meanwhile, continued its gradual decline, falling to 5.3% in July from 5.5% in June. Europe's economic growth got a boost by 0.5% growth in France and 0.4% in Spain, where lower inflation has helped lift consumer spending power. The French figure, however, was increased by a ...

BOJ loosens tight grip on rates as prices rise, markets bet on bigger pivot

At a two-day policy meeting that ended on Friday, the BOJ kept unchanged its short-term interest rate target at -0.1% and that for the 10-year government bond yield around 0%

European Central Bank hikes interest rates for 9th time to combat inflation

The European Central Bank raised interest rates for the ninth straight time in its yearlong campaign to stamp out painfully high inflation, even as worries about recession fuel speculation that Thursday's hike could be its last. ECB President Christine Lagarde had all but promised the quarter-percentage point increase. That puts the focus at her post-meeting news conference on whether the bank will raise rates again at its September meeting or hold off after a record series of rate hikes. Central banks around the world have been raising borrowing costs to combat inflation unleashed by higher energy prices after Russia invaded Ukraine and supply chain backups as the global economy recovered from the coronavirus pandemic. Now, the question is whether the rapid rate hikes are reaching their end. The ECB move followed a decision by the US Federal Reserve on Wednesday to raise its key rate for the 11th time in 17 months.

Sensex snaps 3-day losing streak, ends 351 pts up; L&T, RIL, ITC shine

CLOSING BELL ON JULY 26, 2023: The NSE Nifty rallied 98 points to 19,778; IT and bank stocks gained ground, while M&M and Bajaj twins slipped on Wednesday.

Gold trades in tight range before anticipated US Fed rate hike decision

Spot gold was mostly unchanged at $1,959.85 per ounce by 0855 GMT. US gold futures for August delivery fell 0.2% to $1,962.10

OIS rates fall as US Fed seen the end of interest rate hike cycle

Earlier, traders were expecting the central bank to cut the repo rate, starting February

State Bank of India raises its lending rate by 5 bps across all tenures

State Bank of India (SBI), country's largest lender, has raised its marginal cost of funds based lending rate (MCLR) by 5 basis points (bps) across all tenures, a move that will lead to an increase in EMIs for borrowers. With the increase, EMIs will go up for those borrowers who have availed loans on MCLR, not for those, whose loans are linked to other benchmarks. The revised MCLR rate is effective from July 15, as per the information posted on SBI website. With the revision, one-year MCLR has increased to 8.55 per cent, from the earlier 8.50 per cent. Most of the loans are linked to the one-year MCLR rate. An overnight, one-month and three-month MCLR rose by 5 bps to 8 per cent and 8.15 per cent, respectively, whereas a six-month MCLR increased to 8.45 per cent. At the same time, two-year MCLR also increased by 5 bps to 8.65 per cent, while three-year MCLR rose to 8.75 per cent. From October 1, 2019, all banks, including SBI, have to lend only at an interest rate linked to an .

Weak demand for SBI perpetual bonds as investors seek higher returns

Questions around the viability and pricing of perpetual bonds resurfaced after similar securities were written off as part of the rescue of Credit Suisse in March