Page 21 - Interest Rates

Inflation to fall below 6% next year amid RBI rate hikes: Ashima Goyal

RBI Monetary Policy Committee (MPC) member Ashima Goyal on Wednesday said that the efforts of the Reserve Bank to contain price rise by repeatedly increasing interest rates will help in containing inflation, which is likely to fall below 6 per cent next year. Goyal further said that the policy rate hikes have largely reversed pandemic-time cuts but the real rate remains low enough not to hurt the growth recovery. "With a lag of two-three quarters, higher real rates will reduce demand in the economy. "International commodity prices are softening with the global slowdown and supply chain bottlenecks have reduced," she told PTI in a telephonic interview. In order to control rising inflation, the RBI on September 30, raised the short-term lending rate for the third consecutive time by 50 bps to take the repo rate to 5.9 per cent. Since May it has cumulatively increased the key interest rate by 190 basis points. "The Indian government is also taking action to reduce supply-side inflati

Gold slides to 3-week low as dollar, fears of rate increase dent appeal

Gold prices slipped to a three-week low on Wednesday as the U.S. dollar and Treasury yields rose on bets of more steep interest rate hikes from the Federal Reserve

Banks offer over 3-year high interest rate to raise funds through CDs

Call mkt rates at higher end of rate corridor as liquidity shrinks rapidly

66% CEOs in India expect recession in 2023; layoffs on the cards

Eighty-six per cent CEOs in India, compared to 71 per cent CEOs globally, predict that a recession will impact company earnings by up to 10 per cent over the next 12 months.

Gold prices firm as US dollar slides; rate-hike concerns cap upside

Gold prices rose on Tuesday as a weaker dollar lifted bullion's appeal for overseas buyers, although risks from interest rate hikes by the U.S. Federal Reserve limited further gains

Gold prices jump more than 1% as US dollar, yields pull back

Gold prices on Monday rose more than 1% after declines in the previous two sessions, as the U.S. dollar and Treasury yields faltered

BofA beats Q3 profit estimates on gains from higher interest rates

The second-largest US bank's consumer business reported a 12% jump in revenue, helped by higher balances and a rise in interest rates and a 9% jump in combined credit and debit card spend

FPIs withdraw Rs 7,500 cr from Indian equities in Oct on rate hike concerns

The flows from FPIs have been inconsistent over the last few months as they kept on changing their stance frequently tracking the fast-changing investment scenario

India's real rate shouldn't be more than 1%: MPC member Ashima Goyal

In a Q&A, she says the interest differential with US does not matter so much because India has caps on interest sensitive inflows. Overseas investment is a very low share of the country's debt market

NBFC Sundaram Finance Ltd revises interest rates on term deposits

Non-banking finance company Sundaram Finance Ltd has revised the interest rates on term deposits for tenures of one to three years with immediate effect, the company said on Sunday. Accordingly, the interest rates for deposits of up to 12 months has been increased to 6.65 per cent, for 24 months it has been hiked to 7 per cent, the company said in a statement. For tenures of up to 36 months, the interest rates have been increased to 7.30 per cent. Senior citizens would get an additional interest of 0.35 per cent for one year at 7 per cent, 7.35 per cent for tenures up to two years and 7.65 per cent for tenures up to three years. The company said its deposit balance stood at Rs 4,219 crore.

Banking stocks: Investors need to tread cautiously amid macro challenges

Indian inflation is running at 7.4 per cent, while the 364-day T Bill yield in late September auctions was 6.65 per cent

Gold heads for weekly decline as fears of hefty US interest rate hikes loom

Growing anticipation of another oversized US Federal Reserve interest rate hike kept the bullion on track for a weekly decline

Worsening inflation in US will pressure Fed to keep raising interest rates

Inflation in the United States accelerated in September, with the cost of housing and other necessities intensifying pressure on households, wiping out pay gains and ensuring that the Federal Reserve will keep raising interest rates aggressively. Consumer prices, excluding volatile food and energy costs, jumped 6.6 per cent in September from a year ago the fastest such pace in four decades. And on a month-to-month basis, such core prices soared 0.6 per cent for a second straight time, defying expectations for a slowdown and signalling that the Fed's multiple rate hikes have yet to ease inflation pressures. Core prices typically provide a clearer picture of underlying price trends. Overall prices rose 8.2 per cent in September compared with a year earlier, down slightly from August, the government said on Thursday in its monthly inflation report. But from August to September, prices increased 0.4 per cent, faster than the July-to-August increase. Though cheaper gas helped slow the

Capital cost may rise as drivers of equities reverse: Report

Three decades have been benign for global equities, but that time is now changing

Scrutinise your no-cost EMI offers for hidden charges, say experts

There could also be a third scenario where the interest cost is added to the product price and then the higher price is converted into EMIs

Gold prices edge higher as investors brace for Fed minutes, inflation data

Gold prices edged higher on Wednesday helped by a slight pullback in the dollar, as investors look to minutes from the U.S. Federal Reserve's September policy meeting

RBI sells dollars as rupee hits record low on US interest rate hike fears

The Reserve Bank of India likely sold dollars via state-run banks on Friday after the rupee slid below 82 to a record low against the dollar on concerns over the US Federal Reserve rate outlook

Loan for 20 years, EMIs for 24: RBI rate hikes leave borrowers in a fix

If a person took a 20-year home loan of Rs 50 lakh in April 2019, their number of EMIs will now be 60 more than the original because of the recent repo rate hikes

More rate hikes, eye on rupee: How experts interpret RBI's 50-bps rate hike

The reluctance of the RBI to change stance from 'withdrawal of accommodation' indicates that more monetary policy tightening is likely to be in the pipeline, analysts said

Banks increase interest rates on bulk deposits as liquidity tightens

Loan, deposit growth gap at 10-year high