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[ad_1] Fixed deposit (FD) investors have benefited from rising interest rates over the past 1-2 years, with rates reaching their peak and remaining there for a considerable time. However, this favorable situation is not expected to continue indefinitely. Although the Reserve Bank of India (RBI) has maintained the repo rate, it is anticipated that this may be the final pause before the central bank initiates a cycle of interest rate reductions, potentially leading to a gradual decrease in bank FD interest rates .While FD investors profited from the rising interest rate environment, the same investment approach may not yield equal benefits in a falling interest rate scenario. "Given the resilient economic growth, the RBI has some flexibility to wait until inflation sustainably falls below the 4% target before considering any rate cuts," ET quoted Raghvendra Nath, MD, Ladderup Wealth Management Pvt. Ltd as saying. Where are FD interest rates headed? Although policy rate ...

[ad_1] WASHINGTON: Major European central banks on Thursday stuck with plans to keep their policy interest rates higher for longer to fight inflation that is proving stickier in some parts of the world than others, dashing any hope that a US Federal Reserve pivot towards interest rate cuts marked a global turning point. Extending the hawkish stance that has dominated global central banking for two years the Bank of England said in a statement that the rate would remain high for "an extended period",- while the European Central Bank said the euro zone's benchmark rates would remain "at sufficiently restrictive levels for as long as necessary." [ad_2] Source link https://worldnews2023.com/business/european-central-banks-bank-of-england-stick-to-higher-rate-regime-times-of-india/?feed_id=322114&_unique_id=671d216d6ae51

[ad_1] Interest rates on small savings schemes like PPF, NSC, etc, are now market-linked and moves in tandem with 10-year G-Sec yield. Going by the G-Sec yields trend, the interest rates on small savings schemes are likely to be raised, says an expert Even as the RBI earlier this month kept the interest rates on hold for the fifth in a row, the government is expected to revise upwards interest rates on small savings schemes like PPF, NSC, etc, on such schemes for January-March 2024 at the end of this month — December 29. An expert said that going by the G-Sec yields trend, the interest rates on small savings schemes are likely to be raised. Sunil Sinha, principal economist and senior director (public finance) at India Ratings & Research, said, “Interest rates on small savings schemes like PPF, NSC, etc, are now market-linked and moves in tandem with 10-year G-Sec yield. Therefore, the interest rate paid on these schemes is likely to go up.” A senior banker has said the governm...

[ad_1] Gold climbed over 1% on Wednesday after the U.S. Federal Reserve indicated they expect to reduce interest rates by three quarters of a percentage point by end-2024, sending the dollar and Treasury yields lower. Spot gold rose 1.2% to $2,183.02 per ounce by 15:23 p.m. EDT (1923 GMT). U.S. gold futures settled 0.1% higher at $2,161. The Federal Reserve held interest rates steady on Wednesday, but policymakers hinted they still expect to reduce them by three quarters of a percentage point by the end of 2024. Congratulations! You have successfully cast your vote Login to view result "Gold is getting a double dose of good news today; the Fed is still projecting three rate cuts this year and the higher interest rate projections moving forward betray a real concern that inflation will be harder to tame," said Tai Wong, a New York-based independent metals trader, Wong added markets are modestly optimistic after the new dot plot maintains three 25 bps rate cuts thi...

[ad_1] Last Updated: May 24, 2023, 23:55 IST The U.S. Memorial Day holiday on May 29 marks the beginning of the peak summer travel season and higher fuel demand. (Image: Reuters File) Brent crude futures rose 90 cents, or 1.2%, to $77.74 a barrel by 12:29 p.m. EDT (1629 GMT) Oil prices rose over 1% on Wednesday, after a large unexpected drawdown in U.S. crude inventories and a warning from the Saudi energy minister that raised the prospect of further OPEC+ production cuts. Brent crude futures rose 90 cents, or 1.2%, to $77.74 a barrel by 12:29 p.m. EDT (1629 GMT). U.S. West Texas Intermediate crude (WTI) gained 97 cents, or 1.3%, to $73.88. U.S. crude inventories posted a massive surprise weekly drawdown of 12.5 million barrels to 455.2 million barrels, the Energy Information Administration said. Analysts had expected an 800,000-barrel rise. [EIA/S] U.S. gasoline stocks dropped by 2.1 million barrels in the week to 216.3 million barrels, the EIA said, while distillate stockpiles f...

[ad_1] The Federal Reserve is raising its benchmark interest rate a quarter of a percentage point, officials with the central bank said on Wednesday, its eighth consecutive hike as policy makers try to subdue inflation. The latest increase in the federal funds rate — what banks charge each other for short-term loans — is smaller than the Fed's 0.5 percentage point increase in December as well as a string of three-quarter point moves over the course of 2022. With the latest increase, the Fed's target interest rate is set in a range between 4.50% and 4.75% — its highest level since late 2007. "Ongoing hikes" The Fed said its campaign to curb prices is working, while indicating it plans to keep rates high for some time. "Over the past year we have taken forceful actions to tighten the stance of monetary policy," Fed Chair Jerome Powell said in a press conference Wednesday."Even so, we have more work to...

[ad_1] Federal Reserve Chairman Jerome Powell testifies during the Senate Banking, Housing, and Urban Affairs Committee hearing titled The Semiannual Monetary Policy Report to the Congress, in Hart Building on Tuesday, March 7, 2023. Tom Williams | Cq-roll Call, Inc. | Getty Images When the Federal Reserve starts to raise interest rates, it generally keeps doing so until something breaks, or so goes the collective Wall Street wisdom. So with the second- and third-largest bank failures ever in the books happening just over the past few days, and worries of more to come, that would seem to qualify as significant breakage and reason for the central bank to back off. related investing news Not so fast. Even with the failure over the past several days of Silicon Valley Bank and Signature Bank that forced regulators to spring into action , markets still expect the Fed to keep up its inflation-fighting efforts. Suring bond yields played into the demise in particular of SVB as the bank fa...

[ad_1] The consumer price index rose 3.2% from a year ago in July, a sign that inflation has lost at least some of its grip on the U.S. economy. Prices accelerated 0.2% for the month, in line with the Dow Jones estimate, the Bureau of Labor Statistics reported Thursday. However, the annual rate was slightly below the 3.3% forecast though higher than June. Excluding volatile food and energy prices so-called core CPI also increased 0.2% for the month, equating to a 12-month rate of 4.7%. The annual rate for core also was slightly below a Dow Jones consensus estimate for 4.8%. Markets reacted positively to the report, with futures tied to the Dow Jones Industrial Average up nearly 200 points and Treasury yields mostly lower. Almost all of the monthly inflation increase came from shelter costs, which rose 0.4% and were up 7.7% from a year ago. The BLS said more than 90% of the increase came from that category, which accounts for about one-third of the CPI weighting. Food prices incre...

[ad_1] Americans are paying the price for the Federal Reserve's flurry of interest rate hikes, engineered to battle the hottest inflation in 40 years, through sharply higher borrowing costs. But with inflation now receding, the Fed's rate hikes may be drawing to an end, and that has important implications for your finances, according to economists.  The Federal Reserve on Wednesday said it's keeping its benchmark rate steady , the central bank's third consecutive pause. Wall Street is now forecasting that the Fed will stand pat in early 2024 due to cooling inflation and a slower job market. After that, the Fed could begin cutting rates as soon as early 2024, some economists are now predicting. To be sure, Fed Chairman Jerome Powell is keeping mum on the bank's next moves,  saying earlier this month that it's too early to declare victory over inflation or to discuss when it might start cutting rates. But he also noted that consumer prices, excluding volatil...

[ad_1] With the second half of the year now underway, investors may want to take another look at their fixed income portfolio. High yields have been a boon to income investors, as the Federal Reserve increased interest rates over the past year. The ramp up, which began in March 2022 in an effort to tame inflation, has pushed yields higher on assets like U.S. Treasurys: The rate on the the 6-month T-bill is hovering just below 5.5%, while the 2-year note is at about 4.7%. Yields on certificates of deposit, money market funds and preferred securities have also seen a boost. US2Y US6M YTD line Yields on the 2-year Treasury and the 6-month T-bill Now the market is looking at the prospect of the Fed approaching the end of its hiking campaign. Policymakers indicated at their June meeting that two more quarter-point increases are on the way before the end of 2023. Indeed, traders anticipate another quarter-point increase next week. Inflation appears to be cooling with consumer and produc...

[ad_1] Last Updated: July 13, 2023, 02:03 IST New York, United States of America (USA) Spot gold was up 1.3% at $1,957.39 per ounce by 10:49 a.m. EDT (1449 GMT), while U.S. gold futures rose 1.3% to $1,963.00. (Reuters) Gold prices surge as cooling US inflation sparks hopes of a sooner-than-expected halt to the Federal Reserve's rate hike cycle Gold prices jumped more than 1% on Wednesday after signs of cooling inflation in the United States boosted hopes that the Federal Reserve could hit the brakes on its rate hike cycle sooner than previously thought. Spot gold was up 1.3% at $1,957.39 per ounce by 10:49 a.m. EDT (1449 GMT), while U.S. gold futures rose 1.3% to $1,963.00. U.S. consumer prices rose modestly in June and registered their smallest annual increase in more than two years as inflation continued to subside. In the 12 months through June, the CPI advanced 3.0%, compared with Reuters estimates of 3.1%. “Gold gapped $10 higher on the softer-than-expected CPI print on ...

[ad_1] Last Updated: July 15, 2023, 03:11 IST New York, United States of America (USA) Spot gold fell 0.1% to $1,959.27 per ounce by 01:45 p.m. EDT (1745 GMT), but has gained about 1.8% so far this week. U.S. gold futures settled little changed at $1,964.40. Gold prices ease, poised for biggest weekly gain since April on slowing U.S. inflation and rate hike expectations Gold prices eased on Friday but were on track for their biggest weekly gain since April, after signs of slowing U.S. inflation raised expectations of a pause in Federal Reserve’s interest rate hikes after this month. Spot gold fell 0.1% to $1,959.27 per ounce by 01:45 p.m. EDT (1745 GMT), but has gained about 1.8% so far this week. U.S. gold futures settled little changed at $1,964.40. Bullion hit its highest since June 16 earlier this week after data showed U.S. consumer prices in June registered their smallest annual increase in over two years, prompting bets the Federal Reserve could soon end its rate-hike cycle...

[ad_1] Last Updated: July 06, 2023, 02:16 IST New York, United States of America (USA) Gold is highly sensitive to rising U.S. interest rates, as they increase the opportunity cost of holding non-yielding bullion. Spot gold was down 0.5% at $1,916.49 per ounce by 02:32 p.m. EDT (1832 GMT). U.S. gold futures settled 0.1% lower at $1,927.10. Gold prices fell on Wednesday, weighed down by an uptick in the dollar and U.S. Treasury yields after minutes from the Federal Reserve’s June policy meeting cemented expectations that rates will stay higher for longer. Spot gold was down 0.5% at $1,916.49 per ounce by 02:32 p.m. EDT (1832 GMT). U.S. gold futures settled 0.1% lower at $1,927.10. “Gold slumps to day’s lows after Fed minutes showed that the ‘pause’ in June was simply the path of least dissent and almost the entire committee expected ultimately higher rates," said Tai Wong, a New York-based independent metals trader. “The upcoming JOLTS report and payrolls data will have much...

[ad_1] Last Updated: July 07, 2023, 02:06 IST New York, United States of America (USA) Gold is highly sensitive to rising U.S. interest rates, as they increase the opportunity cost of holding non-yielding bullion. Spot gold was down 0.4% at $1,910.15 per ounce by 2:08 p.m. EDT (1808 GMT), while U.S. gold futures settled 0.6% lower at $1,915.40 Gold prices slipped to a near one-week low on Thursday after a better-than-expected U.S. private payrolls report fuelled expectations for more rate hikes from the Federal Reserve, lifting Treasury yields higher. Spot gold was down 0.4% at $1,910.15 per ounce by 2:08 p.m. EDT (1808 GMT), while U.S. gold futures settled 0.6% lower at $1,915.40. U.S. private payrolls increased more than expected in June, indicating strength in the labour market despite growing risks of a recession from higher interest rates. Benchmark U.S. 10-year Treasury yields rose to a more than four-month peak, while yield on two-year U.S. Treasury note hit the highest si...

[ad_1] Last Updated: July 06, 2023, 02:30 IST Saudi Arabia, the world's biggest crude exporter, on Monday said it would extend its voluntary output cut of 1 million barrels per day (bpd) to August. (Photo: Reuters) U.S. West Texas Intermediate crude (WTI) rose $2 from Monday's close, or 2.9%, to settle at $71.79 a barrel U.S. crude oil gained about 3% on Wednesday, narrowing the price gap with global benchmark Brent in a post-holiday response to supply cuts announced on Monday by Saudi Arabia and Russia, as market participants awaited U.S. demand data for the Fourth of July weekend. U.S. West Texas Intermediate crude (WTI) rose $2 from Monday’s close, or 2.9%, to settle at $71.79 a barrel. Brent crude futures rose 40 cents, or 0.5%, to settle at $76.65 a barrel, after gaining $1.60 a barrel on Tuesday. There was no WTI settlement on Tuesday because of the U.S. holiday, so trade on Wednesday had it catching up with Brent’s gains the previous day. Both benchmarks hit their ...

[ad_1] Almost all Federal Reserve officials at their June meeting indicated further policy tightening is likely, if at a slower pace than the rapid-fire rate increases that had characterized monetary policy since early 2022, according to minutes released Wednesday. Policymakers decided against a rate increase amid concerns over economic growth, even though most members think further hikes are on the way. Citing the lagged impact of policy and other concerns, they saw room to skip the June meeting after enacting 10 straight rate increases. Officials felt that "leaving the target range unchanged at this meeting would allow them more time to assess the economy's progress toward the Committee's goals of maximum employment and price stability." Federal Open Market Committee members voiced hesitance over a multitude of factors. They said that a brief pause would give the committee time to assess the impacts of the hikes, which have totaled 5 percentage points, the mos...