Page 14 - Interest Rates
RBI's MPC is likely to keep interest rates unchanged despite inflation
Six-member Monetary Policy Committee is meeting amid weak indicators raising doubts about the economy's ability to sustain a nascent recovery
 "RBI's MPC is likely to keep interest rates unchanged despite inflation")
RBI likely to maintain status quo on interest rate amid fears of third wave
The Reserve Bank is likely to maintain status quo on interest rate and watch the developing macroeconomic situation for some more time before taking any decisive action on monetary policy.
 "RBI likely to maintain status quo on interest rate amid fears of third wave")
Sailing through floater funds in a scenario of rising interest rates
Floater funds have given returns of over 5 per cent in the last one year
 "Sailing through floater funds in a scenario of rising interest rates")
Investors can lock in interest rates for long term with G-secs: Analysts
Direct retail investment facility should lead to better secondary market liquidity in gilts
 "Investors can lock in interest rates for long term with G-secs: Analysts")
Best of BS Opinion: US mkt exceptionalism, fall in urban male jobs & more
Here are the best of Business Standard's opinion pieces for Tuesday
 "Best of BS Opinion: US mkt exceptionalism, fall in urban male jobs & more")
Interest rates and asset prices
Low interest rates in a downturn tend to push up asset prices (and high interest rates in a boom can lower asset prices).
LIC Housing Finance vies for home loan pie with interest rate cut
It will apply to loan amounts of up to Rs 50 lakh offered to salaried individuals.
 "LIC Housing Finance vies for home loan pie with interest rate cut")
RBI warns against combination of high public debt, low interest rates
The Reserve Bank of India (RBI) has said that the combination would pose challenges.
 "RBI warns against combination of high public debt, low interest rates")
Banks not in a hurry to hike interest rates on deposits despite price rise
Year-on-year growth in deposits till early June 2021 has been 9.7 per cent while credit growth is only 5.7 per cent.
 "Banks not in a hurry to hike interest rates on deposits despite price rise")
Bank of England maintains interest rate despite rising inflation
The Bank of England (BoE) has announced an unchanged interest rate at 0.1 per cent, despite prediction of inflation being temporarily above its 2 per cent target in the months ahead
 "Bank of England maintains interest rate despite rising inflation")
Inflation impact on sovereigns depends on real interest rates: Fitch
Higher levels of global government debt as a result of the coronavirus pandemic have made sovereign creditworthiness increasingly sensitive to interest rate changes.
 "Inflation impact on sovereigns depends on real interest rates: Fitch")
The Federal Reserve is about to shift gears. This time it may be different
Though policymakers have yet to agree on a plan, most expect that by the end of 2023 they will have raised interest rates at least twice from the current near-zero level
 "The Federal Reserve is about to shift gears. This time it may be different")
US Fed holds rates at zero, projects two hikes by the end of 2023
"Progress on vaccinations has reduced the spread of Covid-19 in the United States," the Federal Open Market Committee said in a statement released Wednesday
 "US Fed holds rates at zero, projects two hikes by the end of 2023")
RBI likely to maintain status quo in August policy, says SBI report
Retail inflation witnessed a significant uptick in May
Interest margins of banks at 12-yr high; cost of funds fell 50 bps in FY21
Analysts attribute the margin expansion to the wedge between RBI's repo rate and the lending rate in the market
 "Interest margins of banks at 12-yr high; cost of funds fell 50 bps in FY21")
Banks offering higher interest rates on FDs to encourage Covid vaccination
In a bid to encourage more COVID-19 vaccination, some state-owned lenders have announced higher interest rates on deposits, but for a limited period. City-based UCO Bank said it is offering 30 basis points or 0.30 per cent higher rate on fixed deposits of 999 days for applicants who have received at least one dose of a Covid vaccine. "We are also taking minor steps to encourage vaccination drives. We are offering UCOVAXI-999... for a limited period till September 30," a bank official said. Central Bank of India had also recently launched the Immune India Deposit Scheme with an additional interest rate of 25 basis points above the applicable card rate for those who have been vaccinated. The new product has a maturity of 1,111 days, the lender said in a release. The cumulative number of COVID-19 vaccine doses administered in the country has exceeded 23.59 crore, the health ministry said on Monday.
 "Banks offering higher interest rates on FDs to encourage Covid vaccination")
Low home loan interest rate regime to continue: Realtors on RBI policy
The industry hailed the RBI's decision to keep policy rates unchanged
 "Low home loan interest rate regime to continue: Realtors on RBI policy")
RBI's MPC begins deliberations amid expectations of status quo in key rate
The RBI had kept key interest rates unchanged at the last MPC meeting held in April.
 "RBI's MPC begins deliberations amid expectations of status quo in key rate")
US stocks mixed, treasuries drop after Fed keeps rates pinned near zero
The Federal Reserve has maintained the pace of bond purchases as was widely expected
 "US stocks mixed, treasuries drop after Fed keeps rates pinned near zero")
Exporters remain optimistic with weaker rupee and low interest rates
Covid-19 continues to pose the greatest threat to trade outlook, as new waves of infection could easily undermine any hoped-for recovery, said the WTO
