Page 12 - Interest Rates

Pakistan's inflation rises to 31.4% in Sept amid high energy prices

Interest rates also risen to their highest at 22%, and Pak rupee hit all-time lows in Aug before recovering in Sept to become best performing currency following clampdown on unregulated FX trade

Oil pares gains ahead of US Fed's comments on interest rate moves

U.S. West Texas Intermediate crude futures were largely steady, up just 12 cents to $90.91 a barrel, after also jumping more than a $1 in earlier trading, and after losing 92 cents on Friday

Govt hikes interest rate on 5-year recurring deposit scheme to 6.7%

Small savings schemes are government-backed investment options that offer guaranteed returns. The interest rates on small savings schemes are reviewed every quarter

Govt raises interest rate on 5-year recurring deposit to 6.7% for Dec qtr

According to a finance ministry circular, the interest rate on savings deposit has been retained at 4 per cent and on the one-year term deposit at 6.9 per cent

Vedanta raises funds at higher rates amid company rejig, say bankers

The company will offer a coupon of 12%, payable on a quarterly basis to investors of the issue, which is unrated, bankers said, adding that the coupon on an annualised basis works out to be around 13%

ECB looks to leverage AI to better understand inflation after big misses

Joining the masses of firms already using AI, the ECB is now exploring ways to process and analyse millions of data points, including public price data, corporate statistics

Govt considering $7.2 billion housing loan interest subsidy scheme

The scheme will offer an annual interest subsidy of between 3-6.5% on up to 0.9 million rupees of the loan amount

Fed funds futures trade for December rate hike sees record volume

The fed funds futures market allows traders to place wagers on the precise timing of US central bank policy actions, and they did so to an eye-popping degree after this week's meeting

Fed leaves rates unchanged at 5.25-5.50%, sees tighter policy through 2024

As they did in June, Fed policymakers at the median still see the central bank's benchmark overnight interest rate peaking this year in the 5.50%-5.75% range

Benchmark 10-year yields approach August highs as oil prices gain

Oil prices increased on Tuesday for a fourth consecutive session, raising fears that higher commodity prices will keep price pressures elevated

Dollar near six-month high before key central bank interest rate decisions

The euro was up 0.1% against the dollar at $1.0667. the yen was up a similar amount at 147.69 to the dollar, with traders out for a Japanese public holiday

Russia raises interest rate as inflation, exchange rate worries continue

The Central Bank of Russia raised its key lending rate by one percentage point to 13 per cent on Friday, a month after imposing an even larger hike, as concerns about inflation persist and the ruble continues to struggle against the dollar. The increase comes as annualised inflation rose in September to 5.5 per cent and the bank said it expected it would reach 6-7 per cent by the end of the year. Inflationary pressure in the Russian economy remains high. Significant pro-inflationary risks have crystallised, namely the domestic demand growth outpacing the output expansion capacity and the depreciation of the ruble in the summer months," the bank's board said in a statement. "Therefore, it is required to additionally tighten monetary conditions. The bank in August increased the lending rate to 12 per cent a jump of 3.5 percentage points as the ruble fell to 100 against the dollar. Although the ruble's exchange rate improved mildly after the rate hike, it remains around 95 to the ...

ECB hikes key interest rate to record high even as recession threat grows

Thursday's decision raises the ECB's benchmark deposit rate to 4%, up drastically from minus 0.5% just a little more than a year ago and the highest since the euro was established in 1999

Bank of England is 'much nearer' to peak interest rates, Bailey says

The BoE has raised rates at each of its last 14 meetings as it grappled with the highest inflation among the world's big, rich economies

High interest rates may impact borrowers' debt service capacity: FSB to G20

Ahead of the G20 Summit here, Switzerland-based Financial Stability Board (FSB) on Tuesday warned that higher interest rates alongside a slowing growth outlook, could impair the capacity of borrowers to service historically high levels of debt. The FSB has published two letters from its Chair, Klaas Knot, to G20 Leaders ahead of their Summit in New Delhi on September 9-10. The first letter outlines the work FSB has undertaken under the Leadership of India's G20 Presidency to address existing vulnerabilities in the financial system and enhance the resilience of the financial system to structural change. The second letter provides to G20 Leaders an update on the G20 Cross-border Payments Roadmap. FSB, in its communication to G20 leaders, stressed that a resilient and stable financial system is indispensable to sustaining economic growth, particularly in the current environment. FSB notes the challenging backdrop of strong and persistent inflation and slowing growth, and warns that .

RBI must ensure there's no spillover from surging food prices: MPC members

The central bank is targeting to keep inflation between 2% and 6% but the consumer price index accelerated by 7.44% last month

Fed's Powell says higher rates may be needed, will move 'carefully'

"It is the Fed's job to bring inflation down to our 2% goal, and we will do so," Powell said in a keynote address to the Jackson Hole Economic Policy Symposium

RBI's MPC to closely monitor food price spike to gauge inflation impact

The MPC, which has three members from the central bank and three external members, kept the repo rate unchanged at 6.50% in an unanimous decision

Provide borrowers option to switch to fixed interest rates: RBI to banks

The Reserve Bank on Friday asked banks and other lenders to provide individual borrowers an option of switching over to a fixed rate at the time of reset of interest rates. In a notification, it said in respect of EMI-based floating rate personal loans, in the wake of rising interest rates, several consumer grievances related to elongation of loan tenor and/or increase in EMI amount, without proper communication with and/or consent of borrowers have been received. In order to address these concerns, RBI asked entities regulated by it to put in place an appropriate policy framework. "At the time of sanction, REs shall clearly communicate to the borrowers about the possible impact of change in benchmark interest rate on the loan leading to changes in EMI and/or tenor or both. Subsequently, any increase in the EMI/ tenor or both on account of the above shall be communicated to the borrower immediately through appropriate channels," RBI said. It further said that at the time of reset o

States' borrowing cost rises to 7.49%, coupon rate highest in 16 weeks

States' borrowing cost rose as they offered a coupon rate of 7.49 per cent for the securities sold in auction on Monday. The coupon rate is the highest in the past 16 weeks, according to an analysis by Icra Ratings. Nine states together raised Rs 13,200 crore from selling government securities in the auction held on Monday. While the amount mopped up was 4 per cent lower than the indicated amount for the week in the auction calendar, the funds were raised at a higher cost, as per the analysis. The weighted average cut-off coupon rate rose to 7.49 per cent, up 4 basis points from 7.45 per cent in the auction last week. The rate rose in spite of the fact that the weighted average tenor dipped to 13 years from 15 years, the analysis showed.