Page 5 - Interest Rate Hike

Rupee to extend decline as US hiring data points to more Fed rate hikes

Non-deliverable forwards indicate rupee will open at around 82.66-82.70 to the U.S. dollar compared with 82.51 in the previous session

Sri Lanka's central bank reduces interest rates for second time in a month

Sri Lanka's central bank on Thursday announced a reduction in the interest rates aimed at enabling the cash-strapped island nation's economy to reach its potential and easing pressures in the financial markets. A statement from the Central Bank of Sri Lanka said the deposit facility rate and the lending facility rates were reduced by 200 basis points to 11 and 12 per cent. This is aimed at enabling the economy to reach its potential and stabilising inflation at mid-single digit levels in the medium term while easing pressures in the financial markets, the statement said. Accordingly, the banking and financial sector is urged to pass on the benefits of this significant easing of monetary policy by the central bank to individuals and businesses, thereby supporting economic activities to rebound in the period ahead, the statement added. This is the second policy interest rate reduction as the central bank in early June brought down policy interest rates -- the first such in three ...

Oil settles higher, trade choppy as tight supply vies with rate hike fear

European Central Bank President Christine Lagarde has cemented expectations for a ninth consecutive rise in euro zone rates in July

Oil prices fall on concerns of slow fuel demand, weak China industrial data

Brent crude futures declined 40 cents, or 0.5%, to $73.63 a barrel by 0444 GMT. U.S. West Texas Intermediate (WTI) crude futures fell 32 cents, or 0.5%, to $69.24 a barrel

Nasdaq ends up, dollar strengthens as Powell hints at more rate hikes

The S&P 500 ended essentially unchanged, while the blue-chip Dow Jones Industrial Average closed negative territory, weighed down by healthcare stocks

Rate hikes revealed hidden stresses of banking sector: Chandrasekaran

The rise in interest rates has revealed hidden stresses in parts of the banking sector and this could impact global growth in the coming year, according to Tata Group and Tata Motors Chairman N Chandrasekaran. In his address to shareholders of Tata Motors in the annual report for 2022-23, he said, "the current year witnessed a surge in inflation requiring coordinated action by most central banks to increase interest rates to control inflationary expectations." Chandrasekaran further wrote, "While inflation is starting to moderate, the rise in interest rates has also revealed hidden stresses in parts of the banking sector that enjoyed a long run of low-interest rates and hence not prepared for the rate rise. This could impact global growth in the coming year." Recollecting his last year's message, he said, "recent history has been relentless with the global pandemic, military conflict, growing inequality, supply chain shortages and more." These challenges are resulting in structural

Markets have been over-optimistic in foreseeing rate cuts: Rahul Bhuskute

The biggest possible risk for Indian equities and for all asset classes globally is the possibility of delayed interest rate cuts by central banks globally, says Rahul Bhuskute, CIO, Bharti AXA Life

Recession risk, rate rises drive down private equity deals to 4-yr low

Since the start of the year, buyout firms have been unable to secure cheap debt and have had to draw on their own funds, marking a departure from traditional leveraged buyouts

Rate hikes depend on India's inflation, not Fed, say external MPC members

Domestic markets have been concerned about India being pressured to follow the US Federal Reserve in raising rates to ensure that a too-narrow rate differential does not restrict dollar inflows

Interest rate hikes will come at a 'careful pace' from here: Fed's Powell

Powell did not specify his own view on when and how high rates should move. Most policymakers see at least two more quarter-point rate increases by the end of this year

Interest rate hikes echo globally as inflation proves unrelenting

Swiss officials showed they're not ready to call time on monetary action either, even with inflation near 2%

UK will be 'OK': Sunak as rate hike exposes Conservative party's tensions

Sunak has repeatedly said voters should judge him on bringing inflation down - a pledge which sits awkwardly with his team's implied criticism of the Bank of England

MPC minutes: RBI members diverge on further rate hikes amid growth risks

The RBI in its policy also brought back the focus on 4% as the medium term target of the MPC and not just the 2-6% band

ECB raises interest rates to highest in 22 years, signals more increases

The European Central Bank pressed ahead with another interest rate hike on Thursday and pledged more are on the way, aiming to crush inflation that is driving up the cost of groceries, utility bills and summer vacations even after the US Federal Reserve took a break from its own string of increases. The boost of a quarter-percentage point, to 3.5 per cent, is the eighth straight increase since July 2022 for the 20 countries that use the euro currency. That is an unprecedentedly swift campaign to tighten the flow of credit to the economy as the bank seeks to return inflation to its target of 2 per cent from 6.1 per cent. ECB President Christine Lagarde said more hikes, including at the bank's next meeting on July 27, are in the cards. Are we done? Have we finished the journey? No, we're not at destination. Do we still have ground to cover? Yes, we have ground to cover, she said at a news conference. Lagarde said the bank will continue to hike at our next meeting. So we are not thin

Unlikely that the RBI will precede the US Fed in pivoting to a rate cut

RBI Guv Das needs to keep financing conditions easier to aid growth, while also maintaining adequate rate differential to attract foreign portfolio flows

US Fed keeps rates unchanged but signals two more potential hikes this year

The US Federal Reserve kept its key interest rate unchanged Wednesday after having raised it 10 straight times to combat high inflation. But in a surprise move, the Fed signalled that it may raise rates twice more this year, beginning as soon as next month. The Fed's move to leave its benchmark rate at about 5.1 per cent, its highest level in 16 years, suggests that it believes the much higher borrowing rates it's engineered have made some progress in taming inflation. But top Fed officials want to take time to more fully assess how their rate hikes have affected inflation and the economy. The central bank's 18 policymakers envision raising their key rate by an additional half point this year, to about 5.6 per cent, according to economic forecasts they issued Wednesday. The economic projections revealed a more hawkish Fed than many analysts had expected. Twelve of the 18 policymakers forecast at least two more quarter-point rate increases. Four supported a quarter-point increase. On

UK wages rise sharply in April, set to bolster expectations of rate hike

Wages in the U.K. spiked sharply in April, official figures showed Tuesday, a development that is set to cement expectations that the Bank of England will raise interest rates once again next week. The Office for National Statistics found that people's regular pay packets, which exclude bonuses, were up 7.2% in the three months to April from the same period the year before, as against the equivalent 6.6% increase recorded in January. The spike, which was largely due to a near-10% increase in the minimum wage at the start of April, was the highest on record other from when the figures were distorted by the coronavirus pandemic. Though wages are still lagging the headline rate of inflation, which at the last count stood at 8.7%, the increase is likely to feature heavily in next week's deliberations among rate-setters at the Bank of England. Higher wages raise the prospect of more spending in the economy, which can fuel price rises. Hannah Slaughter, senior economist at the Resolution

'Interest demand in pre-import regularisation cases can be contested'

The CBIC Circular referred to above says that the bill of entry will be assessed again and then you have to make the IGST payment

Why spate of bank deposit rate hikes could be a thing of the past

Around 85% of the Rs 2000 notes are deposited in the bank accounts and not exchanged for smaller denominations. Thus, bank deposits are likely to increase by atleast Rs 2 lakh crore

RBI policy 2023: A look at the existing repo rate, trends and other figures

RBI policy: Shaktikanta Das will announce the MPC decision today at 10 am