Page 12 - Interest Rates

Demand uptick, easing inflation to provide advantage to exports in 2024

Easing inflation in developed countries, softening interest rates, a gradual pick up in global demand and other factors will provide a silver lining for the country's exports and the overall outbound shipments are expected to be more than USD 900 billion in 2024. International trade experts have expressed hope that the services sector would perform better than merchandise and the country's overall outbound shipments may touch over USD 900 billion in 2024 against an estimated USD 764 billion in 2023. A stable rupee against the US dollar, focus on new markets like Latin America and Africa, new items like mobiles and fresh fruits, focus on promoting e-commerce exports, free trade agreements with the UAE and Australia would also help the country register healthy growth in outbound shipments next year. Despite various challenges, including geopolitical tensions and China's subdued post-pandemic recovery, impacting exports this year, India's goods and services exporters have managed to ta

Scaling peaks: Sensex tops 72,000 in Santa Claus rally, Nifty50 passes 21k

The easing of the Federal Reserve's preferred inflation gauge has further bolstered hopes of aggressive rate cuts next year

Crypto market eyes interest rates, expected bitcoin ETFs in 2024: Report

The price of bitcoin, the biggest cryptocurrency and the market's chief barometer, has more than doubled this year, reaching a 20-month high in November of $42,000 per token

No plans to loosen rates, no complacency on inflation fight: RBI governor

Governor Shaktikanta Das on Friday ruled out loosening interest rates, saying inflation remains top priority as a few months of good data should not lead to complacency, even as the Reserve Bank kept key policy rates unchanged for the fifth consecutive time. The six-member monetary policy committee of the Reserve Bank of India voted to leave the repurchase rate at 6.50 per cent and decided to keep on sucking out liquidity from the system. Addressing reporters after the bi-monthly policy announcement at the central bank headquarters here, Das clarified that the inclusion of over-tightening in his policy statement should not be construed as anything else. A "loosening" of the rates is not on the table at all," the governor said. Sounding more hawkish, Das said, "The primary objective of the monetary policy, as prescribed in the law, is ensuring price stability that's by maintaining inflation at 4 per cent target for a durable time. ...in May 2022 when we had shifted our focus from .

US 10-year yields hit three-month lows on growth concerns, rate change

US data this week will be closely watched for new clues on the strength of the economy, with Friday's jobs report for November the main focus

US dollar gains back ground on rate bets; bitcoin breaches $42,000

The dollar index, which tracks the currency against six major peers, rose by 0.59% to 103.71, while the euro was last down 0.61% to $1.0815

World economy will slow in 2024 because of inflation, high rates, war: OECD

The global economy, which has proved surprisingly resilient this year, is expected to falter next year under the strain of wars, still-elevated inflation and continued high interest rates. The Paris-based Organization for Economic Cooperation and Development estimated Wednesday that international growth would slow to 2.7% in 2024 from an expected 2.9% pace this year. That would amount to the slowest calendar-year growth since the pandemic year of 2020. A key factor is that the OECD expects the world's two biggest economies, the United States and China, to decelerate next year. The US economy is forecast to expand just 1.5% in 2024, from 2.4% in 2023, as the Federal Reserve's interest rate increases 11 of them since March 2022 continue to restrain growth. The Fed's higher rates have made borrowing far more expensive for consumers and businesses and, in the process, have helped slow inflation from its four-decade peak in 2022. The OECD foresees U.S. inflation dropping from 3.9% this

Mis-selling trap; air purifier basics: Top personal finance stories

Our pick this week explains when you must say no to your relationship manager and what the best purifiers do

Reliance raises Rs 20K cr at 7.79%, largest issue by non-financial firm

Reliance Industries has raised Rs 20,000 crore in the largest bond issue by a non-financial Indian firm, paying 7.79 per cent interest rate, the company said on Friday. The coupon rate is 40 basis points more than the government's borrowing cost. The company's 10-year bonds were sold at a coupon rate of 7.79 per cent, the firm said in a stock exchange filing. "We wish to inform that the company has today allotted 20,00,000 secured, redeemable, non-convertible debentures (NCDs) of the face value of Rs 1,00,000 each, issued on private placement basis," it said. The base issue size was Rs 10,000 crore, with an option to retain oversubscription (green shoe option) of up to Rs 10,000 crore. The company's bond issue earlier this week received bids worth Rs 27,115 crore, with major interest from insurance companies. Of this, it retained Rs 20,000 crore. The debentures will be secured by "all moveable plant and machinery (both present and future) of the company, located at Hazira and Dah

UBS is underweight on Indian equities within EM/Asia: Sunil Tirumalai

Valuations in India, he said in this interview, are pricing a lot more 'sentiment' premium than what fundamentals of the stocks can explain

BoE keeps main UK interest rate unchanged at 15-year high of 5.25%

The Bank of England has kept its main interest rate unchanged at the 15-year high of 5.25 per cent, as inflation across the UK is expected to fall further over the coming months. In a statement on Thursday, the bank's nine-member Monetary Policy Committee indicated that inflation, as measured by the consumer price index, is set to fall toward a 2 per cent target rate over the coming year. In the year to September, inflation stood at 6.7 per cent. Most economists expect a sizable decline over coming months as domestic energy bills fall. The bank in September ended a nearly two-year run of interest rate rises.

US Fed leaves rates unchanged at 5.25%-5.50%, says economy is strong

''Economic activity expanded at a strong pace in the third quarter," the U.S. central bank said in a policy statement after a two-day meeting

High interest rates causing surge in company insolvencies in England

Official figures Tuesday showed the number of company insolvencies in England and Wales jumped 10% year-on-year to 6,208 in the third quarter

Banks offering up to 9 per cent interest: Top fixed deposit rates right now

Unity Small Finance Bank offers 9.5 per cent interest rate on senior citizens fixed deposit for 1001 days tenure as of October 25, 2023

European Central Bank holds rates after 10 hikes in a row to tame inflation

This sharp policy tightening is leaving a mark on the economy, with data earlier this week showing weak credit creation and economic activity

Invest in US Treasury debt fund for currency hedge: What is on offer?

There could be losses in these funds if interest rates rise or the rupee appreciates

Prolonged Israel-Hamas war means higher interest rates for longer: IMF

Inflation is still high and that requires interest rates to remain high, throwing more cold water on growth, said IMF

4% inflation focus may not signal 'higher for longer' rates: MPC members

"The focus, therefore, naturally shifts to the next stage of bringing the inflation to the target level," said Varma, adding that there is no ambiguity in the eventual inflation goal of 4%

At or near peak for interest rate target: US Federal Reserve's Mester

Mester noted Fed forecasts released at the September meeting eyed another increase in what is currently a federal funds target rate range of between 5.25% and 5.5% by the end of the year

World's higher-for-longer rate era stokes worry among finance officials

Debt levels are at record high levels at the same time that we're in this higher-for-longer interest-rate environment, said Gita Gopinath, No 2 official at IMF