Page 6 - Interest Rates

RBI unlikely to cut rates in 2024 amid food inflation uncertainty: SBI

The Reserve Bank is unlikely to ease the benchmark policy rate during 2024 given the uncertainty over food inflation, State Bank of India (SBI) chairman C S Setty has said. The US Federal Reserve's first cut in interest rates in more than four years is expected soon, triggering central banks in other economies to follow suit. "On the rate front, a lot of central banks are taking independent calls. While Fed rate cut would influence everyone, RBI would be mindful of the food inflation before taking a call on interest rate cut," Setty, who took over the reins of the bank recently, told PTI in an interview. "That is what our view is, and our view is also that the rate cut during the current calendar year may not happen, probably we may have to wait for Q4 (January-March 2025) unless there is a good improvement in terms of food inflation," he said. The Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das is scheduled to meet during October 7-9 and take a call on inter

World braces for Federal Reserve easing amid 36-hour rate rollercoaster

When Fed policymakers sit down Tuesday for the start of their two-day meeting, they'll have fresh figures on the state of consumer demand

Pakistan central bank's MPC cuts key policy rates by 200 bps to 17.5%

Pakistan's Central bank on Thursday cut its key policy rate by 200 basis points to 17.5 per cent from 19.5 per cent bowing to demands for a major rate cut. The State Bank in a statement said that the Monetary Policy Committee (MPC) decided to reduce the policy rate by 200 basis points (bps) to 17.5 per cent in its meeting on Thursday. Various factors impacting the inflation outlook were taken into consideration while reaching this decision, it said. Inflation in August was at 9.6 per cent, resulting in a positive real interest rate of 10 per cent. Financial experts generally anticipated a reduction of 150 bps with some forecasting a cut of up to 200 bps. However, industry leaders advocated for a deep 500 bps cut to spur economic growth. The Monetary Policy Committee (MPC) assessed the real interest rate to still be adequately positive to bring inflation down to the medium-term target of 5 to 7 per cent and help ensure macroeconomic stability, the statement read. The MPC said glob

Era of free mortgages over in Japan with central bank raising interest rate

Japan's central bank had maintained benchmark interest rates near zero since the mid-1990s. As a result, many home buyers have gotten used to paying between 0.3 and 0.4 per cent

SBI fighting for deposits through 'service quality', says C S Setty

The lender will try to understand the pain points of customers such as staff shortage

Bank of Canada may cut interest rates deeper, faster over next year

Policymakers led by Governor Tiff Macklem are expected to lower the benchmark overnight rate to 4.25 per cent at their Sept. 4 meeting

Interest rate derivatives to get boost as top insurer LIC enters market

Forward rate agreements (FRA) are contracts between banks and insurance firms that allow the latter to lock in rates for a future date, protecting them from volatility

Consumers could become discouraged unless rates drop: Bank of America CEO

At the end of July the Fed kept the policy rate in the same 5.25 per cent-5.50 per cent range it has been for more than a year, but signaled that a rate cut could come as soon as September

London's FTSE 100 falls after US recession fears spark global sell-off

Friday's data showed a sharp slowdown in US job growth, raising fears of deterioration in American labour market and potential recession, prompting bets for a half-point interest rate cut in September

RBI to hold interest rates steady in August, first cut expected in Q4: Poll

A sharp spike in food prices drove inflation in Asia's third-largest economy to a five-month high of 5.08 per cent in June

Fed is about to nod at a interest rate cut as job growth moderates

US central bankers, who've kept interest rates at a more than two-decade high for a full year, are widely expected to leave them there again when their two-day meeting ends on Wednesday

ECB keeps interest rates unchanged, offers no guidance on next move

ECB came out with a balanced message following Thursday's meeting, arguing that corporate profits were absorbing some price pressures but risks remained

Gold extends record rally on US Fed interest rate-cut bets, softer dollar

Spot gold eased about 0.2% to $2,462.85 per ounce as of 1548 GMT, driven by profit-taking, after the bullion hit a high of $2,482.29 earlier in the session

Conservative hybrid funds can be a better bet than fixed deposits

Asset allocation ensures investor gets small exposure to stocks in a predominantly bond portfolio

Israeli interest rate cuts off table as war complicates next move

Alongside its decision on Monday, the central bank will publish fresh economic forecasts and could revise an outlook from April that showed the key rate at 3.75% in the first quarter of 2025

RBI keeps floating rate savings bond interest rate for July-Dec at 8.05%

Interest rate on bonds is reset twice a year, with investors receiving interest payments semi-annually on January 1 and July 1

Govt keeps small savings schemes' interest rates unchanged for Q2FY25

The government on Friday left the interest rates on various small savings schemes unchanged for the quarter beginning July 1, 2024. "The rates of interest on various small savings schemes for the second quarter of FY 2024-25, starting from July 1, 2024, and ending on September 30, 2024, shall remain unchanged from those notified for the first quarter (March 1, 2024, to June 30, 2024) of FY 2024-25," said a finance ministry notification. As per the notification, deposits under the Sukanya Samriddhi scheme will attract an interest rate of 8.2 per cent, while the rate on a three-year term deposit remains at 7.1 per cent. The interest rates for popular PPF and post office savings deposits scheme too have been retained at 7.1 per cent and 4 per cent, respectively. The interest rate on the Kisan Vikas Patra will be 7.5 per cent, and the investments will mature in 115 months. The interest rate on the National Savings Certificate (NSC) will remain at 7.7 per cent for the July-September 20

Bank of England to keep rates at 16-year high of 5.25% before UK election

Last month the central bank forecast inflation would rise to around 2.6 per cent by the end of the year

Commercial properties become stranded across Europe poor energy performance

The development is playing out as the commercial market struggles to right itself after years of turbulence due to higher interest rates and volatile post-pandemic occupancy rates

As global central banks consider rate cuts, inflation worries loom

Canada and the European Central Bank have been the first ones to introduce rate cuts, however, they have expressed their concerns about inflation