Page 4 - Interest Rate Hike

Indian shares end lower in volatile session ahead of RBI's rate decision

BENGALURU (Reuters) -Indian shares struggled for direction on Tuesday before closing lower, as markets see-sawed between optimism that the Reserve Bank of India will pause rate hikes.

Declining core inflation limits need for further rate hikes by RBI: S&P

S&P Global Ratings on Tuesday said core inflation in India has been declining sequentially, and an elevated 6.25 per cent policy rate limits the need for further rate hikes. The Reserve Bank has increased the short-term lending rate by 225 basis points since May last year to contain inflation, mostly driven by external factors, especially global supply chain disruption, following the Russia-Ukraine war outbreak. The policy rate now stands at 6.25 per cent. The RBI's rate-setting panel - Monetary Policy Committee (MPC) - will decide on the interest rate on Wednesday. "In India, core inflation has been elevated for longer; however, it eased sequentially in the second half of 2022. An already elevated 6.25 per cent policy rate limits the need for further increases," S&P said in a report. The RBI has been tasked to ensure that retail inflation remains at 4 per cent with a margin of 2 per cent. However, external factors have led retail inflation to remain above the upper tolerance .

Dollar climbs as Treasury yields pop on further US Fed rate hike forecasts

Markets were still reeling from the shock of Friday's jobs report, which showed that non-farm payrolls surged by an eye-watering 517,000 in January, well above expectations

Interest rate hikes, global inflationary pressures may impact demand: JLR

Hike in interest rates by central banks globally is expected to enhance financing costs for consumers and could impact future demand, Jaguar Land Rover said in a report. The UK-based marquee brand, which aims to be a full stack battery electric player in the next two years, also pointed out that high rate of inflation exacerbated by the Ukraine conflict, elevated energy prices and post Covid supply disruption as other negative factors. "Increasing interest rates in 2022 (including the UK, USand Europe) will flow through into financing costs for consumers and could impact future demand," the automaker said in its Interim Report for the third quarter. The company is working to offset inflationary trends and other issues like high energy prices through profitability improvement actions, it said. The automaker, which is owned by Tata Motors, said that although constraints continue, chip supply is expected to continue to gradually improve. "Partnership agreements put in place with key

Expect 25-bp hike before RBI presses pause button

The rate-increase cycle, which started in May 2022, raising the policy rate from 4 to 6.25 per cent to fight entrenched inflation, is nearing its end

Certainly, uncertainty has declined

Over the past year, global macroeconomic stability has improved, which sets the stage for good growth from 2024

RBI Monetary Policy: One last rate hike now but signaling close to the peak

Inflation remains sticky and most G-10 central banks may in any case, continue with rate hikes; given India's resilient growth momentum, the MPC might increase the repo rate one final time

Bank of Canada hikes policy interest rate by 25 basis points to 4.5%

The bank conducted eight consecutive interest rate hikes since March 2022 and added 425 basis points in total to tackle inflation

Prioritising stability over growth

The backdrop of the Budget augurs well for the government, but a closer look calls for a cautious approach

Bank of Maharashtra raises rates on term deposits after union appeal

Senior citizens will be offered an additional rate of 0.5% per annum for all maturity slabs

Bank of Maharashtra employees' union for term deposit rate hike

Writes to management, says bank losing deposits to other lenders

Oil prices stable as market awaits clarity on US Fed interest rate hike

A weaker dollar can boost demand for oil, as dollar-denominated commodities become cheaper for holders of other currencies

Bank of Baroda increases MCLR from 8.3% to 8.5% effective January 12

Marginal cost of funds-based lending rate (MCLR) is the minimum interest rate below which a bank cannot lend, except in certain cases

Employee union urges Bank of Maharashtra to hike rates on term deposits

Company is losing balances in savings as well as fixed deposits to competitors, it says

Bulls stage turnaround on Monday; key reasons why Sensex rallied 850 pts

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

Europe stumbles as firm Fed not cutting interest rates amid China rally

Markets are clearly being tugged in different directions though

High portfolio yields to make debt funds an attractive option in 2023

Investors could also get the benefit of capital gains this year

Israel's central bank raises interest rate to 3.75%, highest since 2008

This is the seventh consecutive rise in the base interest rate in Israel since April 2022 when the figure then stood at 0.1 per cent, reports Xinhua news agency

Central banks may reverse rate hikes in 2023 to escape slowdown: SBI

Financial markets in 2022 have remained volatile and edgy with the central banks globally in unison in a rate hike cycle

Sensex, Nifty set to gain for seventh straight year; smallcaps underperform

The underperformance of the small-caps, according to analysts, was mostly due to rising raw material prices and the hike in rates by central banks, which in turn impacted their financial performance