Page 8 - Interest Rate Hike

RBI has 'enough valid reasons' to pause rate hikes in April: ISEC PD

Market participants and analysts broadly expect a rate hike of 25 basis points (bps) on April 6, when the country's monetary policy committee (MPC) ends its three-day meet

How India is breathing easy on corporate debt amid crisis elsewhere

Indian companies are doing better than peers, but business is slowing down

Global central banks stick to rate hikes with eye on market turmoil

Overall, 10 developed economies have raised rates by a combined 3,290 basis points (bp) in this cycle to date

UK central bank hikes interest rates like Fed amid financial turmoil

The Bank of England focused on fighting inflation, announcing an 11th consecutive interest rate increase Thursday despite concerns about the economic fallout from troubles in the global financial system. Britain's central bank boosted its key rate by a quarter-percentage point to 4.25 per cent, a day after the US Federal Reserve approved a similar move to tame inflation that is crimping household budgets and slowing economic growth. The decision by the bank's Monetary Policy Committee came after the UK statistics agency surprised policymakers Wednesday by reporting that inflation accelerated to 10.4 per cent in February, driven by the cost of food, clothing and dining out. Before the figures were released, many analysts had expected the Bank of England to keep rates on hold following the collapse of two US banks and the ensuing troubles at Switzerland's Credit Suisse, which forced a hastily arranged takeover by rival UBS. The bank will continue to monitor closely indications of ...

US banking crisis: Key interest rates suggest RBI may go slow on tightening

The fall in OIS rates mirrored a decline in the 10-year US bond yield, which plunged close to 40 bps after the collapse of SVB

ECB hikes rate by 50bps to 3.5% despite bank chaos; highest since Oct 2008

The European Central Bank has carried through with a large interest rate increase Thursday, brushing aside predictions it might dial back as U.S. bank collapses and troubles at Credit Suisse fed fears about the impact of higher rates on the global banking system. The ECB hiked rates by half a percentage point Thursday, underlining its determination to fight high inflation. In a post-meeting statement, the bank called the banking sector in the 20 countries using the euro currency resilient, with strong finances. It says it's monitoring current market tensions closely and stands ready to respond as necessary to preserve price stability and financial stability in the euro area. ECB head Christine Lagarde said last week that it was very likely the bank would raise its benchmarks by a half-percentage point, part of a series of rapid rate hikes aimed at getting inflation down from 8.5% far above the bank's target of 2%. That was before Silicon Valley Bank in the U.S. went under last we

Bank stocks can slide more; stay away for now: Analysts

Analysts expect the underperformance in bank stocks to continue ahead as the current fears around the banking sector globally are likely to persist for some time

RBI doing it right on rate hikes, need more: IMF economist Luis Breuer

She further added that India's inflation was not due to excessive demand and so there is much less tightening needed than the US

Nifty 50 index heads for technical correction amid global turmoil

Rising interest rates, coupled with this year's rout in the Adani conglomerate's stocks, have also weighed on the local market

Retail inflation above 6% in February, may trigger another rate hike

Experts see 25 bps hike in April; say wheat output may dip due to heat wave; El Nino may emerge as key determinant of food prices going ahead, if it strikes this summer

We hope RBI will opt for a pause on rate hikes: CII president Sanjiv Bajaj

Inflation is coming under control. You've got all the right tailwinds for growth. And so we hope that RBI will take a pause on rate hikes, says Sanjiv Bajaj, President, CII

Increasing interest costs

Corporate results indicate improving demand

Powell sees higher peak for rates, says Fed prepared to speed up if needed

Federal Reserve Chairman Jerome Powell on Tuesday cautioned that interest rates are likely to head higher than central bank policymakers had expected

Asia's very complicated interest-rate pause and sticky inflation

All central banks assert they move independently from the Fed. In practice, they tend to replicate broad trends in American credit

Major central banks return to rate hikes to fight inflation in February

Policy makers in Australia, Sweden, New Zealand and Britain joined the U.S. Federal Reserve and the European Central Bank in lifting key lending rates by a total of 250 basis points (bps)

HFCs to face headwinds amid rising interest rates, says India Ratings

India Ratings in a report on Tuesday said these factors, along with rising inflation rate, will impact borrowers cash-flows, which will also hit the asset quality marginally

HDFC Ltd hikes home loan rates by 25 basis points effective March 1

However, lender has a limited period festive season offer, under which borrowers with credit scores of 760 and above can get home loans at 8.7% till March 31

Central banks, including RBI, may raise interest rates to combat inflation

ECB President Christine Lagarde has already said the bank till hike rates, if needed

Markets may give single-digit positive returns for the year: J Jaipuria

"The market is not factoring in any major interest rate hike. The consensus is that we are close to a prolonged pause in the rate-hike cycle"

The real story behind real interest rate

While the debate will continue about the benchmark rate to calculate real interest rate, both for the lenders and the savers, shouldn't all rates be higher than the rate of inflation?