Bonds have since pared their gains, with the budget math increasingly looking daunting as commercial interest rates soar tracking a tight monetary policy
Kotak Mahindra Bank increased select deposit rates by up to 25 basis points
Traders expect the excess cash with banks to dry up significantly over the next three to four months
owell acknowledged that interest rates might need to move higher than expected if economic conditions remained strong but reiterated that he felt a process of disinflation was underway
The Fed is widely expected to raise the target rate to 4.5% to 4.75% at Wednesday's Federal Open Market Committee meeting
After a series of jumbo rate hikes in 2022 to tame inflation, the market is all but certain of a 25 basis points (bps) increase in interest rates later on Wednesday
Inflation is cooling, and parts of the economy appear to be weakening. But Chair Jerome Powell is likely Wednesday to underscore that the Federal Reserve's primary focus remains the need to fight surging prices with still-higher interest rates. With financial markets anticipating that the Fed will stop raising rates soon and possibly even cut them later this year, analysts say Powell will need to push back against such optimism. If financial markets expect lower rates than what the Fed plans to deliver, the central bank's already treacherous task can become even harder. Powell's tough message will likely emerge at a news conference after the Fed's 19-member policy committee announces its latest action. The policymakers are set to raise their benchmark rate by a quarter-point to a range of 4.5% to 4.75%, its highest level in about 15 years. The move could further increase borrowing rates for consumers as well as companies, ranging from mortgages to auto and business loans. In some
Tamer rate hike expectations helped lower the dollar index, which supported oil prices as a weaker greenback makes the commodity cheaper for buyers holding other currencies
"Credit funds have performed quite well in 2022, on the back of an improving economic cycle, low-interest rates, and easing liquidity as domestic and global economies opened up"
Worth its weight in Gold: Saw portfolio increase of 1-6 percentage points in November-December 2022
Investors will get a sense of how much more debt India is planning to raise in it's upcoming Feb 1 budget
Currently, most large lenders offer deposit rates between 6.75% and 7.30% for 1-2 year deposits and between 5.75% and 7.25% for longer-term deposits
With interest rates peaking, you could benefit from a decline in them
Liquidity conditions will also not return to surplus as seen in the pandemic years, which will maintain fundamental pressure on domestic interest rates
Further, the Bank is offering interest rates up to 7.50% p.a, which includes 0.50% p.a. for senior citizens and 0.25% for non-callable deposits, for a period of 1 year and upto 3 years
Lower interest rates tend to be beneficial for bullion as they decrease the opportunity cost of holding the non-yielding asset
Your portfolio will benefit from geographical diversification; long-term returns of these funds are good
In addition to the hike in interest, the bank's customers will also get monthly interest pay-outs on their balances.
The market sentiment got a boost from jobs and services data in the US, which hinted at a cooling economy prompting bullish bets from investors
After four straight 75-basis point hikes earlier in 2022, the US Federal Reserve raised its overnight borrowing rate by another 50 basis points in December