Page 5 - Interest Rates

Turkiye's central bank lowers key interest rate to 47.5%, 1st cut in 2 yrs

Turkiye's central bank lowered its key interest rate by 2.5 percentage points to 47.5 per cent on Thursday, carrying out its first rate cut in nearly two years as it tries to control soaring inflation. Citing slowing inflation, the bank's Monetary Policy Committee said it was reducing its one-week repo rate to 47.5 per cent from the current 50 per cent. The committee said in a statement that the overall inflation trend was flat in November and that indicators suggest it is likely to decline in December. Demand within the country was slowing, helping to reduce inflation, it said. Inflation in Turkey surged in recent years due to declining foreign reserves and President Recep Tayyip Erdogan's unconventional economic policy of lowering rates as a way to tame inflation which he later abandoned. Inflation stood at 47 per cent in November, after having peaked at 85 per cent in late 2022, although independent economists say the real rate is much higher than the official figures. Most ..

BoE keeps interest rates steady at 4.75%, but MPC members split on decision

Three of the BoE's nine-person Monetary Policy Committee - Deputy Governor Dave Ramsden and external members Swati Dhingra and Alan Taylor - voted for a quarter-point rate cut to 4.5 per cent

BoE to hold key rate despite slow economic growth, high inflation

The UK's central bank is set to keep interest rates on hold later Thursday as inflation has moved further above its target rate, even though the British economy is flatlining at best. The nine-member Monetary Policy Committee is widely expected to keep the bank's main interest rate unchanged at 4.75 per cent in the wake of figures showing inflation rising to 2.6 per cent, further above the target of 2 per cent. With price pressures elevated in the crucial services sector, which accounts for around 80 per cent of the UK economy, and wages strong, there are few indications that inflation will get back towards the target anytime soon. As a result, the rate-setting panel, which last cut its key rate in November, is set to take a cautious stance, as lower borrowing rates could stoke inflation. That's a disappointment for many struggling sectors in the UK economy that would be helped by lower interest rates in an environment of paltry growth in fact the British economy has contracted for

BOJ keeps rates steady; dissent signals potential tightening next year

As widely expected, the nine-member BOJ board voted 8-1 to keep its short-term policy rate unchanged at 0.25

Fed cuts key interest rates by 0.25%; reverse repo rate lowered to 4.25%

Analysts believe the largely expected adjustment is a bid by the Fed to nudge cash out of a facility that's widely viewed as a proxy for excessive liquidity in the financial system

Oil dips on demand concerns, focus on US Fed interest rate decision

Brent crude futures eased 32 cents to $73.59 a barrel at 0949 GMT, while US West Texas Intermediate crude was down 44 cents at $70.27 a barrel

High interest rates, fiscal consolidation slowing GDP growth: CRISIL

Some technical factors, such as net product taxes and the GDP deflator, have also disrupted GDP's trajectory

Pakistan's central bank cuts key policy rate by 200 basis points to 13%

Pakistan's central bank on Monday further reduced the key policy rate by 200 basis points (bps) to 13 per cent from 15 per cent amid improvement in inflation. The State Bank of Pakistan (SBP) announced that its Monetary Policy Committee (MPC) decided to cut the policy rate by 200 bps to 13 per cent, effective from December 17, 2024. It said that the decision was helped by the continued decline in food inflation as well as the phasing out of the impact of the hike in gas tariffs in November 2023. However, it added that core inflation, which stood at 9.7 per cent, was proving to be sticky, whereas inflation expectations of consumers and businesses remain volatile. The MPC also noted that the current account had remained in surplus for the third consecutive month in October 2024, which, amidst weak financial inflows and substantial official debt repayments, helped increase the foreign exchange of the central bank to around $12 billion. The committee also said global prices had remaine

Time to focus on export-led Indian miracle as US leans toward isolationism

It is surprising that India has not followed this path even though there have been plenty of examples of export-led economic miracles from the 1950s closer home

When will new RBI governor Sanjay Malhotra cut rates? Brokerages weigh in

Here's how leading brokerages have interpreted the development, and their expectations from Sanjay Malhotra as regards key rates and maintaining a balance between growth and inflation

GDP growth likely bottomed out; inflation to prevent December RBI rate cut

The CPI inflation for Q3 FY2025 is expected to overshoot the MPC's estimate of 4.8 per cent for the quarter by at least 60-70 bps

Govt. push for re-KYC, Banks seek governance reform, Interest rates, HSBC India, & Bima Sugam project

Government push for re-KYC completion Private banks seek governance reform Affordable interest rates a priority HSBC India expands amid market shift Bima Sugam project’s capital requirement rises

Banks need to make loans more affordable, says FM Nirmala Sitharaman

The Finance Minister also said that inflation is very volatile because of supply and demand constraints

US Oct retail inflation modestly up, may result in fewer interest rate cuts

The consumer price index rose 0.2% for the fourth straight month, the Labor Department said on Wednesday. In the 12 months through October

BFSI Summit: 'Service key to mobilising deposits, not just interest rates'

BFSI Summit: CEOs of prominent private banks say that interest rate hikes are not the key to attracting customers. Instead, the delivery of banking services and brand trust play more significant roles

Fed seen on track for 25-basis-point interest rate cuts next week, in Dec

The increase of 12,000 nonfarm payroll jobs last month was far short of the 113,000 economists had anticipated

US economy has grown at solid pace again last quarter despite high rates

Powered by consumer spending, the U.S. economy likely kept expanding at a healthy pace from July through September despite the pressure of still-high interest rates. The Commerce Department is expected to report Wednesday that the gross domestic product the economy's total output of goods and services grew at a 2.6% annual pace last quarter, according to a survey of forecasters by the data firm FactSet. That would be down from a 3% annual rate in the April-June period. But it would still amount to a solid pace as Americans ponder the state of the economy in the final stretch of the presidential race. Wednesday's report is the first of three estimates the government will make of GDP growth for the third quarter of the year. The U.S. economy, the world's biggest, has shown surprising resilience in the face of the much higher borrowing rates the Federal Reserve imposed in 2022 and 2023 in its drive to curb inflation. Despite widespread predictions that the economy would succumb to a .

Positives outweigh negatives in economy: RBI Governor Shaktikanta Das

Says action against NBFCs in the best interest of customers

LIC eyes entry into bond forward rate agreement market by end of FY25

The move comes as the interest rate cycle is set to soften, with insurers offering more guaranteed-return products

ECB set to deepen global easing with interest rate cut it didn't expect

US reports will offer a sense of how much momentum consumers, manufacturers and homebuilders had approaching the final quarter of the year