Page 3 - Interest Rate

BoB's new deposit scheme offers 7.1-7.6% interest on short-term deposits

Public sector lender Bank of Baroda on Monday announced a new deposit scheme offering interest payments in the range of 7.1-7.6 per cent per annum. Bank of Baroda in a statement said its special short-term retail deposit scheme offers an interest rate of 7.60 per cent annually for senior citizens and 7.10 per cent for others. The scheme opened on Monday and is applicable on retail deposits below Rs 2 crore. The bank had been offering 6.25 per cent for 271 days bulk deposits earlier. Existing and new customers of the bank can open this bulk deposit scheme, called the BoB360, at any branch, online or through the mobile app. Banks are offering higher interest on deposits as more and more people are investing in mutual funds and stock markets which are offering better returns than bank deposits. The flight of money out of the banking system can lead to asset-liability mismatches in banks' books. This had the Reserve Bank recently warning banks about a likely crisis as when the policy

Equity market set for eventful journey on interest rate trajectory in 2024

With tailwinds of a remarkable year and handsome investor returns, Indian equities are set for an eventful journey in 2024, with a slew of local and global cues -- varying from interest rates to Lok Sabha polls to geopolitical happenings. Analysts are of the view that the bull run in the domestic equity market will continue, and over the next 3-6 months, the benchmark indices -- Sensex and Nifty -- could climb up to 7 per cent. In 2023, the 30-share BSE Sensex jumped 11,399.52 points or 18.73 per cent, and the NSE Nifty climbed 3,626.1 points or 20 per cent. Lok Sabha elections, the US Presidential polls, the trajectory of interest rates, particularly in the US and India, inflation trends and geopolitical situation will be the key factors for the stock market, analysts opined. Experts said the return of the BJP government with a majority in the 2024 general elections is a pivotal factor on the market's wishlist for the new year. As political stability plays a significant role in .

BoJ keeps negative interest rate unchanged, says watching wage trends

The Bank of Japan kept its longstanding easy credit policy unchanged on Tuesday, saying it will watch price and wage trends before raising its negative benchmark interest rate. The BOJ policy decision was widely expected. But investors and analysts believe the central bank is tip-toeing toward a shift due to price increases that have left inflation above its 2% target. The U.S. dollar gained against the Japanese yen and stock prices surged after Tuesday's decision. The benchmark rate of negative 0.1% is meant to encourage banks to lend more and businesses and consumers to borrow more to spur the economy, the world's third-largest. The central bank also has purchased trillions of dollars worth of government bonds and other assets as part of its strategy of injecting more cash to spur growth as the Japanese population shrinks and grows older. Inflation has risen in Japan but at a much slower pace than in the U.S. and other major economies, most recently at about 3%. At the same time,

Turkey's central bank hikes rates again to tame eye-watering inflation

Turkey's central bank delivered another huge interest rate hike on Thursday as it tries to curb double-digit inflation that has left households struggling to afford food and other basic goods. The bank pushed its policy rate up by 5 percentage points, to 40 per cent, marking its sixth big interest rate hike in a row focused on beating down inflation that hit an eye-watering 61.36 per cent last month. However, the bank said its rate hikes would soon end. The current level of monetary tightness is significantly close to the level required to establish the disinflation course, the bank said. Accordingly, the pace of monetary tightening will slow down and the tightening cycle will be completed in a short period of time. President Recep Tayyip Erdogan has long been a proponent of an unorthodox policy of cutting interest rates to fight inflation and had fired central bank governors who resisted his rate-slashing policies. That runs counter to traditional economic thinking, and many blam

Banks set to increase interest rates on unsecured loans and NBFCs

Demand to slow down post rate increase

Green deposits offering higher interest than regular FDs, should you pick

Green deposits are essentially deposits raised for the purpose of utilising the proceeds towards financing of green projects/activities

Savings schemes for senior citizens: Check interest, benefits, more

The savings scheme for senior citizens is a government-backed scheme which ensures regular money flow post-retirement. The scheme gives guaranteed returns every quarter to senior citizens

Real estate demand strong despite rising interest rates: REA India CEO

"We have witnessed quarter-on-quarter growth over the last several quarters despite rising rates," said Dhruv Agarwala, CEO at REA India, part of the Australia-listed REA Group

Post Office Recurring Deposit Scheme; features, interest rate and more

Opening a post office recurring deposit account could be the perfect way to save money for a certain period of time. Here's everything you need to know about Post Office RD Scheme

Expects it to be appropriate to raise rates further: US Fed Governor

Bowman, in prepared remarks to a banking conference, said inflation remains too high and expects progress in lowering it to be slow "given the current level of monetary policy restraint."

India bond yields dip as investors eye second-half borrowing calendar

The 10-year benchmark 7.18% 2033 bond yield ended at 7.1441% after closing at 7.1541% in the previous session

Dollar hits 10 month high as US yields spike, yen recovers from dip

Federal Reserve policymaker Neel Kashkari said on Monday that, given the strength of the U.S economy, interest rates should probably rise again and be held "higher for longer"

Give fixed rate option on EMI-based loans while resetting rates: RBI

The RBI on Friday directed banks to allow individual borrowers paying loans through EMIs to opt for fixed interest rate system or extension of loan tenor, a move aimed at preventing loanees from falling into the trap of negative amortisation, in wake of rising interest rate. The interest rates have moved northward since May 2022 after the central bank started raising the benchmark lending rate (repo) in a bid to check inflation following the outbreak of the Russia-Ukraine war. As a result of 250 basis points increase in the repo rate, a large number of borrowers faced negative amortisation, wherein the Equated Monthly Instalment (EMI) works out to be less than the interest obligation, resulting in persistent increase of the principal amount. RBI said that at the time of sanction of EMI-based floating rate personal loans, banks and NBFCs should take into account the repayment capacity of borrowers to ensure that adequate headroom is available for elongation of tenor and/ or increase

India August retail inflation expected below 7%: Motilal Oswal's Gupta

Retail inflation rose as of last count as prices of vegetables and cereals skyrocketed, beating all market expectations and putting pressure on the government to bring down prices

Small savings schemes interest rates hiked by 30 bps for July-Sept quarter

Interest rates on term deposits for three years and five years have been retained at 7 per cent and 7.5 per cent

Federal Reserve holds rates steady, sees two small hikes by end of year

Further rate increases would take into account cumulative tightening of monetary policy, lags with which policy affects economic activity, inflation, and economic and financial developments, it said

RBI's decision to keep repo rate unchanged on expected lines: Experts

The Reserve Bank of India's decision to keep policy rates unchanged was on expected lines, banking and financial experts said on Thursday. The Monetary Policy Committee (MPC), which has three members from RBI and an equal number of external experts, voted unanimously to keep the benchmark repurchase, or repo rate unchanged at 6.50 per cent. Punjab National Bank MD & CEO Atul Kr Goel said that keeping policy rates unchanged was "in line with the market expectations" in view of easing retail inflation and anticipation of a further decline. He also said that maintaining the growth projection of GDP for the current financial year at 6.5 per cent reflects that RBI remains sanguine about economic growth. Bandhan Bank Chief Economist and Head of Research said the status quo on the repo rate in the MPC meeting was "almost a foregone conclusion". "Interestingly, despite lowering the consumer price index inflation forecast for the first quarter of the current fiscal by 50 basis points, the

China opens new channel giving access to $3 trn swap market with Hong Kong

China has set a 20 billion yuan ($2.9 billion) daily limit for net trading under Swap Connect, and instruments eligible include swaps referencing the seven-day fixing repurchase rate

Interest rate hold likely as inflation at its weakest in 18 months

Easing inflation will bring relief to policy makers when the economy is facing headwinds from geopolitical tensions and slowing global demand

US manufacturing output ekes out gains in Feb due to high interest rate

The Institute for Supply Management's measure of national manufacturing activity has contracted for four straight months