Page 7 - Interest Rate Hike

Gold edges toward weekly gain on hopes of dovish Fed rate hike strategy

Spot gold gained 0.2% to $1,758.41 per ounce by 0223 GMT, and was up 0.5% so far this week. U.S. gold futures rose 0.7% to $1,758.30

Forex below $500 bn would force RBI to hike aggressively: Morgan Stanley

RBI has used close to $100 bn of FX reserves since late 2021 to defend the currency. Such action makes sense as it had been accumulating FX reserves before that and it wants INR stability

ICICI Bank launches dollar bond, deposit-linked loan for NRIs at GIFT City

Lender claims to be the first to offer these products in GIFT City

Rate hikes will help Indian banks post healthy profits in FY23: S&P

The rising interest rates will enable Indian banks to continue posting good profits during the remaining part of FY23, according to S&P Global Market Intelligence.

Kotak Mahindra increases 1-year MCLR rate by 10 bps, hikes for other tenors

For other tenor loans ranging from overnight to three year, the revised rates are in the range of 7.80-9.05%, according to Kotak

US Federal Reserve official suggests substantial rate hikes may be needed

The Federal Reserve may have to raise its benchmark interest rate much higher than it has previously projected to get inflation under control, James Bullard, who leads the Federal Reserve Bank of St. Louis, said Thursday. Bullard's comments raised the prospect that the Fed's rate hikes will make borrowing by consumers and businesses even costlier and further heighten the risk of recession. Wall Street traders registered their concern by sending stock market futures further into the red early Thursday. The Dow Jones Industrial Average was down about 330 points shortly before trading began. Bullard's remarks followed speeches by other Fed officials in recent days that suggested they see only limited progress, at most, in their use of steadily higher rates to fight inflation. The Fed's key short-term interest rate has not yet reached a level that could be justified as sufficiently restrictive, Bullard said. To attain a sufficiently restrictive level, the policy rate will need to be

Handling external shocks

Following the US Fed's monetary policy lead is not in the interest of emerging economies

RBI likely to go for smaller rate hikes as inflation eases: Analysts

The RBI has already raised rates by 190 bps since May, to 5.90%, as it battles to reign in inflation that has stayed above its 2%-6% tolerance band for ten straight months now.

Investors pull out big money from debt funds despite attractive yields

Fund managers and MF distributors expect net inflows to turn positive after completion of rate hike cycle

Global supply chains gear up for overhaul next year, survey shows

The survey also showed concerns were broader than supply chains, with 51% of respondents saying their expect the environment for international trade to be harder next year

SBI's Q2 net rises 74% to Rs 13,265 crore on improved interest margins

The lender's net interest income improved 12.83 per cent YoY to Rs 35,183 crore for Q2FY23, against Rs 31,184 crore last year

Bank of England raises rates by most since 1989 even as recession looms

Central bank raises bank rate to 3% from 2.25%

Bank of England makes biggest rate hike in 30 years to beat inflation

The Bank of England has announced its biggest interest rate increase in three decades as it tries to beat back stubbornly high inflation fuelled by Russia's invasion of Ukraine and the disastrous economic policies of former Prime Minister Liz Truss. The bank boosted its key rate by three-quarters of a percentage point Thursday, to 3%, after consumer price inflation returned to a 40-year high in September. The aggressive move to prevent inflation from becoming embedded in the economy was in line with market expectations after a more cautious half-point increase six weeks ago. The interest rate decision is the first since Truss' government announced 45 billion pounds ($52 billion) of unfunded tax cuts that sparked turmoil on financial markets, pushed up mortgage costs and forced Truss from office after just six weeks. Her successor, Rishi Sunak, has warned of spending cuts and tax increases as he seeks to undo the damage and show that Britain is committed to paying its bills. The ra

Rupee likely to weaken after US Fed's Powell hints at higher peak rate

The rupee is expected to open at around 82.85-82.90 to the dollar, compared with 82.7800 in the previous session.

Acting prematurely would have hurt economy, says RBI Governor Das

Shaktikanta Das defends timing of rate hikes amid failure to meet inflation target

Missed inflation target, but acting early would have exerted costs: RBI Guv

RBI Governor Shaktikanta Das on Wednesday defended the Reserve Bank's handling of the price situation, saying acting prematurely on inflation would have exerted a heavy cost on the economy and citizens. Acknowledging that the inflation target has been missed, Das said the RBI decided to support the economy by not introducing a rate hike in face of a spike in inflation. "We prevented a 'complete collapse of the economy' by keeping rates lower and stayed away from premature tightening," Das said speaking at the annual FIBAC conference of bankers here. Acting early would have exerted costs to the economy and the people, Das said. He said the rate-setting Monetary Policy Committee (MPC) is meeting on Thursday to formulate a response to the government, but defended the RBI's move to not make the letter, to be written to the government, public. Not making the letter public does not compromise transparency, Das said, adding that nothing in the law gives him the authority, privilege and .

Borrowing costs bite: Interest-rate surge hurts corporate profits

Interest expenses of listed firms (ex-BFSI) were up 18.5% YoY in Q2FY23

A healthy debate: The case for and against interest rate hike

Having raised policy rates to about 6 per cent, does India's Monetary Policy Committee need to do more? And, if so, is more front-loading warranted?

Moody's lowers Vedanta Resources rating to 'B3' implying high credit risk

Persistently weak liquidity, high refinancing needs triggers rating action

US markets set for a year-end rally despite recession concerns: Chris Wood

A rally in the US markets amid hope of a softer central bank (US Fed) action going ahead, analysts believe, has the potential to fuel a rally in other global equity markets, including India