Page 6 - Interest Rate Hike

YES Bank aims to expand margins by 100 bps in next 3 years, says MD

"We would aim to improve the overall ratio of current account savings account (CASA) deposits further. There is a huge opportunity available there," Prashant Kumar said

Persistent inflation, rising rates will weigh on global economy: OECD

The global economy must steer through a precarious recovery this year and next as inflation keeps dragging on household spending and higher interest rates weigh on growth, banks and markets. That was the takeaway Wednesday from the latest economic outlook by the Paris-based Organization for Economic Cooperation and Development. The group, made up of 38 member countries, raised its growth forecast this year to 2.7 per cent from an estimated 2.2 per cent in November and foresaw only a tiny acceleration to 2.9 per cent next year. The rebound from the COVID-19 pandemic and energy price spike tied to Russia's invasion of Ukraine is likely to be weak by past standards, with average growth of 3.4 per cent recorded in the pre-pandemic years 2013-2019. The path ahead is fraught with risks, from escalation of Russia's war in Ukraine -- with a dam collapse on Tuesday that the sides blamed on each other -- to debt troubles in developing countries and rapid interest rate hikes having unforeseen

Reserve Bank of Australia raises interest rate to 4.1% with 12th hike

Australia's central bank on Tuesday lifted its benchmark interest rate for a 12th consecutive time, to 4.1 per cent, and warned further rises could follow. The Reserve Bank of Australia boosted the cash rate by a quarter of a percentage point at its latest monthly meeting. That followed a higher-than-expected 6.8 per cent annual inflation rate reported for the January-March quarter. Reserve Bank Governor Philip Lowe said it would take time for inflation to fall to the target range of 2 per cent to 3 per cent. This further increase in interest rates is to provide greater confidence that inflation will return to target within a reasonable timeframe, Lowe said in a statement. The cash rate is now at its highest level since April 2012. The bank first started jacking up interest rates in June 2022. Lowe said further increases might be needed. The board will continue to pay close attention to developments in the global economy, trends in household spending, and the outlook for inflati

Status quo on rate, but will the stance change?

We have come to the end of the rate-hike cycle. The speculation is on the timing of the first rate cut. It won't happen anytime soon

New Zealand's bank hikes key interest rate to 5.5%; cut may follow next

New Zealand's central bank raised its benchmark interest rate again on Wednesday to 5.5 per cent but signalled its next move would be a cut, sparking a sell-off in the currency. Wednesday's quarter-point rate rise was the 12th straight hike imposed by the Reserve Bank of New Zealand since October 2021. But for the first time since the tightening cycle began, the bank projected the next move would be a cut, which would likely come later next year. The projection was more dovish than markets had expected and caused the New Zealand dollar to drop by more than 1 per cent to trade at a little below US 62 cents. Like many central banks around the world, the Reserve Bank of New Zealand has been raising rates to try and tame inflation, which in New Zealand has fallen from a recent peak of 7.3 per cent last June to 6.7 per cent. That remains well above the bank's target inflation rate of around 2 per cent. New Zealand's unemployment rate remains low at 3.4 per cent, putting upward pressur

As inflation slows, rate-cut bets surface across Asia on policy pivot

Amid signs that inflation in the region is now slowing, the narrative among market participants has shifted from "peak rates" to rate cuts, which should help drive a rebound in sovereign debt

UK economy grows sluggishly in Q1 as inflation curbs consumers spending

The UK economy grew sluggishly during the first three months of the year as double-digit inflation curbed consumer spending and labour unrest curtailed output in industries ranging from transportation to healthcare and education. Gross domestic product, the broadest measure of economic activity, increased 0.1 per cent in the first quarter compared with the previous three months, the Office for National Statistics said Friday. The figure matched the growth rate during the fourth quarter of last year and was in line with economic forecasts. The figures come a day after the Bank of England approved a 12th consecutive interest rate increase as it struggles to curb inflation that has remained at around 10 per cent since July. The bank also upgraded its economic outlook, saying the underlying picture is more positive than it was earlier this year. Let's be clear, whilst the Bank of England may believe the UK economy will now avoid the predicted recession entirely, the country is not in g

Have a good credit score, need quick money? Opt for unsecured loan

Since the interest rate is high and the loan tenure short, evaluate your repayment capacity carefully

Want to benefit from downturn in interest rates? Go for a dynamic bond fund

Investors who don't want to take interest-rate risk may avoid these funds

ECB raises rates by 25 bps to 3.25% in inflation fight in a 7th hike

The central bank for the 20 countries that share the euro has now lifted rates by a combined 375 basis points since last July, its fastest pace of tightening

IMF says inflation, rate hikes to slow growth across Mideast this year

Economies across the Middle East and Central Asia will likely slow this year as persistently high inflation and rising interest rates bite into their post-pandemic gains, the International Monetary Fund said Wednesday. The IMF's Regional Economic Outlook blamed in part rising energy costs, as well as elevated food prices, for the estimated slower growth. The report said that while oil-dependent economies of the Gulf Arab states and others in the region have reaped the benefits of elevated crude prices, other countries such as Pakistan have seen growth collapse after an unprecedented flooding last summer or as economic woes worsened. The regional slowdown also comes as an explosion of fighting in Sudan between two top rival generals who only a year ago as allies orchestrated a military coup that upended the African country's transition to democracy threatens a nation where IMF and World Bank debt relief remains on hold. Rising interest rates, used by central banks worldwide to tr

Housing loans rise 15% to Rs 19.36 trn despite high-interest rates

Housing loans outstanding rose 15 per cent year-on-year to a record Rs 19.36 lakh crore at March-end, notwithstanding the Reserve Bank's rate hike spree since May last year, showed central bank data released on Friday. The housing loan outstanding at March-end 2022 was Rs 16.84 lakh crore, a growth of 12.9 per cent year-on-year. The loan outstanding for housing (including priority sector housing) was Rs 14.92 lakh crore in March 2021. The Reserve Bank has hiked the benchmark rate by 250 basis points since May 2022, leading to a firming up of interest rates on all loans, including for purchasing residential properties. Releasing the data on 'Sectoral Deployment of Bank Credit March 2023', the central bank said personal loans registered a growth of 20.6 per cent (year-on-year) in March 2023 compared to 12.6 per cent a year ago, primarily driven by housing loans'. The personal loans segment includes consumer durables, housing, advances against fixed deposits, credit card outstanding,

World Bank chief economist calls for new approaches to address debt crisis

The Common Framework should be replaced, he said, in the strongest terms used by a World Bank official. "It's not the right machinery"

US debt default will threaten global financial system, says BlackRock

Addressing the broader economy, Hildebrand said he saw no scenario in which interest-rate cuts would happen this year

US consumer prices rise moderately in March; underlying inflation still hot

The Consumer Price Index (CPI) climbed 0.1% last month after advancing 0.4% in February, the Labor Department said on Wednesday

A potent channel

Recent evidence of a sharp slowdown in house construction in major markets poses downside risks to global growth

High-interest rates make auto industry cautious about growth prospects

Unseasonal rains impacting rural demand, high-interest rates on auto loans and increased costs due to new regulatory norms are making the automotive industry cautious about the growth prospects in the current fiscal. The industry --- which witnessed the first full year without any impact of COVID-19 in FY23 after a gap of two years with double-digit growth of 21 per cent in overall retail sales -- is now set to clock tapered growth in the low single-digit due to a high base, according to the Federation of Automobile Dealers Associations (FADA). As per data shared by the dealers' body, the total domestic vehicle retail sales stood at 2,21,50,222 units in FY23 against 18,3,27,326 units in FY22. Maruti Suzuki India Senior Executive Officer, Marketing and Sales, Shashank Srivastava said the unseasonal rains in March and early April could have a dampening effect on the sentiment in the rural areas. "Because this is the harvest time and these rains are not so good (for the rural sales),"

Top headlines: Change in semiconductor scheme, price caps on gas and more

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Mkts see optimism in RBI's status quo, gain for 5th day after initial fall

Gains in index majors HDFC twins and Reli­a­nce Industries helped offset los­ses in IT, Power and FMCG stocks amid weak global trends

Necessary to assess cumulative impact of action taken so far: RBI

"It is now necessary to assess the cumulative impact of our action taken so far"