Page 15 - Interest Rates

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

As interest rates climb, Sweden's central bank fears financial stability

Due to high inflation and increasing interest rates, Sweden's financial stability is strained and the risks are increasing, the country's central bank (Riksbank) said in a report

Lanka central bank unexpectedly cuts rates by 250 bps as inflation eases

The index peaked at a 69.8% year-on-year surge in September last year. The national inflation rate was at 33.6% in April, easing from 73.7% in September

Interest rates on fresh term deposits and loans dip in April, shows data

The rise in rates seems to have been arrested for now at the end of May. Deposits coming from the withdrawal of the Rs 2,000 note may improve liquidity

Hardening interest rates, geo-political risks impacting FDI inflows: DPIIT

Hardening interest rates globally and worsening geo-political situation have impacted the foreign direct investment (FDI) inflows into India in 2022-23, a top government official said on Tuesday. Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT) Rajesh Kumar Singh said that the department would analyse the reasons for the contraction in FDI in five important sectors like computer hardware and software; construction, education, automobiles and metallurgical industries. "I cannot think of any other reason. It is not as if our FDI policies have become protectionist. On the contrary, we have kept it very very liberal ... The decline is combination of hardening of interest rates along with geo-political risks going up around the world. In general the appetite may be less," Singh told PTI in an interview. These five sectors had a share of USD 30 billion in India's total FDI in 2021-22 and in the last fiscal year, overseas inflows have almost halved. "Why ..

Interest on bank deposits rising faster than on loans: CARE Ratings

The one year median Marginal Cost of Fund based Lending Rate (MCLR) of SCBs increased from 8.55 per cent in March 2023 to 8.60 per cent in April 2023

Home loan borrowers turn to refinancing amid rise in interest rates

Lenders cut spread to attract new customers

Home loan demand declines, special interest rates to continue

CMI findings show a marked increase in demand for credit cards and personal loans, indicating growing adoption of consumption-led credit products that provide convenience and liquidity

Bank of America profit rises as it cashes in on higher interest rates

Bank of America's net interest income, which reflects how much money the bank makes from charging interest to customers, rose 25% to $14.4 billion in the quarter

Budget houses go out of budget; high interest rates and EMIs pinch buyers

Higher EMIs and mortgage rates pinch buyers; segment's share of overall housing sales likely decline in FY23, FY24

Global IT spending continues to decline by 4.4% for 5th consecutive month

Tech spending remains resilient compared to historical economic downturns and other types of business spending, but rising interest rates are now impacting capital spending

Indian companies to see higher interest burden in FY24 against FY22: Report

India Ratings & Research also expects the cost of debt to increase across different categories irrespective of the size of the firms

Interest rates may fall to pre-Covid levels in advanced economies: IMF

The IMF did not say, however, exactly when interest rates were set to fall back to lower levels

Pause now, lower later: Rate cuts may start this year, say economists

RBI projection on GDP growth optimistic, say analysts

Reducing inflation without raising interest rates

It is unfortunate that many see monetary policy and interest rate policy as synonyms. They are not

RBI monetary policy review: What led to the interest rate pause?

Real GDP growth for FY23 is expected at 7%, indicating resilient economic activity

Share of low-cost money in bank deposits dips in FY23 amid clamour for FDs

Ease of movement of funds on digital platforms and deployment of money by businesses from current accounts also played a role in pruning the share of CASA money

Australia pauses rate hikes to assess tightening impact, inflation in focus

In March, two-wheelers, three-wheelers, passenger vehicles and commercial vehicles saw a growth of 12 per cent, 69 per cent, 14 per cent, and 10 per cent, respectively

Govt hikes interest rates on most small savings schemes by up to 70 bps

Rate on National Savings Certificate steeply raised by 70 bps, PPF kept unchanged

Recap FY23: Five key events that shaped equity markets this fiscal year

The turbulence in FY23 can be attributed to a concoction of interest rate hikes, foreign investment outflows, a global war, soaring food, fuel prices and a global banking crisis