European Central Bank policymakers see a rising risk that they will have to raise their key interest rate to 2% or more to curb record-high inflation in the euro zone despite a likely recession.

World Business Watch: ECB governors see rising risk of rate hitting 2% to curb inflation

Inflation woes continue to hit one of South America's largest economy Argentina. The Central Bank in the country has raised its benchmark interest rate by whopping 9.5 percent, the price rise in Argentina is one of the highest in the world.

Argentina hikes key interest rate to 69.5%, one of the highest in the world

India's RBI hiked key lending rates by 50 basis points to tame the rising inflation. Will it be enough to control the spiraling cost-of-living crisis? How does India's economic situation compare with the world? Palki Sharma tells you.

Gravitas: India's RBI hikes key interest rates

The European Central Bank brought an end to the era of negative interest rates in the eurozone with a bigger than expected half-point hike to combat soaring inflation. Molly Gambhir tells you what it means for the Eurozone.

WION Fineprint | Eurozone raises interest rates for first time in 11 years

The European Central Bank has raised interest rates for the first time in 11 years by a larger-than-expected amount in an attempt to cool rampant inflation in the euro zone.

European Central Bank hikes interest rates for first time in 11 years by larger-than-expected amount

The Bank of England (BoE) has hinted at further interest rate rises as it vows to bring inflation back down to 2%. BoE's chief economist Huw Pill said that the central bank's focus was getting prices down and making life more affordable again.

Bank of England warns of rate hike, vows to bring down inflation

The US Federal Reserve raised its benchmark interest rate by 75 basis point. This is the biggest and most aggressive interest rate increase since 1994. The Federal Open Market Committee said that it decided to raise the target range for the benchmark borrowing rate to 1.5%-1.75%.

Federal reserve raises rates by 75 basis-point, most aggressive rate hike since 1994

All eyes are on US central bank Fed's decision on interest rates. There are predictions that the Fed could increase rates by 0.75% in the United states. This will be the biggest interest rate hike.

Wall Street slips into a bear market, all eyes on US fed interest rate hike

Ukraine jacked up its main interest rate to a seven-year-high of 25% from 10% on Thursday, tightening policy for the first time since the Russian invasion to tackle double-digit inflation and protect the hryvnia as some business activity returns.

The Feb. 24 invasion has devastated the economy, which could shrink by at least a third this year as the war has forced 40% of businesses to close, destroyed infrastructure, blocked shipping routes and reduced whole towns to rubble.

Speaking at a briefing, Central Bank Governor Kyrylo Shevchenko called for talks with the International Monetary Fund on a new aid programme.

The rate increase was criticised by an adviser to Ukrainian President Volodymyr Zelenskiy's office, who said the rate was too high and dangerous to the economy during wartime. It was not clear whether he was speaking in a personal capacity.

The prime minister's office and the finance ministry declined immediate comment.

The National Bank of Ukraine (NBU) had frozen its main rate 10% at the start of the invasion, but last week it signalled it could resume regular monetary policy reviews as business activity partially recovered in safer parts of the country.

It is betting that a sharp rate hike will also nudge the government to raise the yield on domestic bonds, making hryvnia assets more attractive and preventing household incomes and savings from being eroded by inflation.

The central bank has fixed the hryvnia exchange rate, which has forced it to sell billions of dollars in forex reserves since the start of the invasion. It aims to let the currency float freely eventually once conditions allow.

"The NBU expects that a significant rise in the key policy rate, to 25%, will be sufficient to ease pressures on the FX market and stabilize inflation expectations, which in the future will lay the foundations for a monetary policy easing cycle," it said.

"If yields on hryvnia assets do not rise sufficiently, international reserves will keep depleting rapidly and imbalances will build up in the economy," it said.

Inflation was already in double digits before the conflict began and climbed further to around 17% in May from 16.4% in April, according to NBU estimates.

The central bank said inflation could double in 2022 from 10% in 2021, pushed up by rising global prices and the damage of the war on domestic production and supply chains.

"A decisive rise in the key policy rate will spur investors’ interest in hryvnia assets, while also easing pressures on international reserves and reining in inflation," the NBU said.

The number of small businesses that had suspended operations in April fell to 26% from 73% in March, according to a survey by the European Business Association, the union of businesses operating in Ukraine.

Thursday's move takes the main interest rate to its highest level since 2015, when Ukraine's economy was reeling from Russia's annexation of Crimea and the outbreak of war between Ukrainian troops and Russian-backed forces in eastern Ukraine.

"The NBU raised the rate to 25%. That's too much. Abrupt movements during the war, when the economy is in a fragile state - are dangerous," presidential adviser Tymofiy Mylovanov wrote on Facebook.

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

WATCH WION LIVE HERE

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false"><iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

&nbsp;

Ukraine jacked up its main interest rate to a seven-year-high of 25% from 10% on Thursday, tightening policy for the first time since the Russian invasion to tackle double-digit inflation and protect the hryvnia as some business activity returns.

Ukraine jacked up its main interest rate to a seven-year-high of 25% from 10% on Thursday, tightening policy for the first time since the Russian invasion to tackle double-digit inflation and protect the hryvnia as some business activity returns. The Feb. 24 invasion has devastated the economy, which could shrink by at least a third this year as the war has forced 40% of businesses to close, destroyed infrastructure, blocked shipping routes and reduced whole towns to rubble. Speaking at a briefing, Central Bank Governor Kyrylo Shevchenko called for talks with the International Monetary Fund on a new aid programme. The rate increase was criticised by an adviser to Ukrainian President Volodymyr Zelenskiy's office, who said the rate was too high and dangerous to the economy during wartime. It was not clear whether he was speaking in a personal capacity. The prime minister's office and the finance ministry declined immediate comment. The National Bank of Ukraine (NBU) had frozen its main rate 10% at the start of the invasion, but last week it signalled it could resume regular monetary policy reviews as business activity partially recovered in safer parts of the country. It is betting that a sharp rate hike will also nudge the government to raise the yield on domestic bonds, making hryvnia assets more attractive and preventing household incomes and savings from being eroded by inflation. The central bank has fixed the hryvnia exchange rate, which has forced it to sell billions of dollars in forex reserves since the start of the invasion. It aims to let the currency float freely eventually once conditions allow. "The NBU expects that a significant rise in the key policy rate, to 25%, will be sufficient to ease pressures on the FX market and stabilize inflation expectations, which in the future will lay the foundations for a monetary policy easing cycle," it said. "If yields on hryvnia assets do not rise sufficiently, international reserves will keep depleting rapidly and imbalances will build up in the economy," it said. Inflation was already in double digits before the conflict began and climbed further to around 17% in May from 16.4% in April, according to NBU estimates. The central bank said inflation could double in 2022 from 10% in 2021, pushed up by rising global prices and the damage of the war on domestic production and supply chains. "A decisive rise in the key policy rate will spur investors’ interest in hryvnia assets, while also easing pressures on international reserves and reining in inflation," the NBU said. The number of small businesses that had suspended operations in April fell to 26% from 73% in March, according to a survey by the European Business Association, the union of businesses operating in Ukraine. Thursday's move takes the main interest rate to its highest level since 2015, when Ukraine's economy was reeling from Russia's annexation of Crimea and the outbreak of war between Ukrainian troops and Russian-backed forces in eastern Ukraine. "The NBU raised the rate to 25%. That's too much. Abrupt movements during the war, when the economy is in a fragile state - are dangerous," presidential adviser Tymofiy Mylovanov wrote on Facebook. You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Ukraine jacks up key rate to 25% in first hike since Russian invasion

The Russian Central Bank cut interest rates from 14% to 11%, after inflation slowed to 17.5% in May compared to 17.8% in April, which is now forecasting that annual inflation will decrease to 5–7% in 2023 and return to 4% in 2024.

Russian Central Bank cuts interest rates from 14% to 11%

The Bank of England’s policymakers are expected to increase interest rates from 0.75% to 1%, a level not seen since 2009. The Bank expects UK inflation to rise to roughly 10% this year as a result of the Russia-Ukraine war and lockdowns in China.

Bank Of England hikes interest rates to 13-year high

The Reserve Bank of India (RBI) raised the repo rate - at which it lends money to commercial banks - by 40 basis points to 4.4%.

India's central bank RBI hikes interest rate

US Federal reserve has hiked interest rates by 50 basis points, in a bid to reign in the raging inflation in the country, the hike is the biggest rate hike since 2000 and the Fed chair has promised to use all available tools to check the four decade high inflation rate.

Fed raises interest rates by 50-bps, markets welcome interest rate

Australia's central bank on Tuesday raised its cash rate by a surprisingly large 25 basis points to 0.35%, the first hike in over a decade, and flagged more to come as it pulls down the curtain on massive pandemic stimulus.

Australia's central bank hikes interest rates

To control inflation and also to prop up the economy, the US central bank is preparing for a rate hike that can come as soon as next month.

US interest rate hike likely in March: Powell testified before US Congress

Federal Reserve officials are coalescing around a plan to raise interest rates steadily starting in March and then move swiftly to shrink the central bank’s big bond holdings as policymakers look to cool the economy at a moment of rapid inflation.

Policymakers have spent the past week broadcasting that the interest rate increase they plan to make at their March meeting — one that investors already fully expect central bankers to make as they try to tame price increases — will be the first in a string of rate moves. Central bankers also appear to be converging on a plan to promptly start shrinking the Fed’s holdings of government-backed debt, which were vastly expanded during the pandemic downturn as the Fed snapped up bonds in a bid to keep markets functioning and cushion the economy.

The central bank bought $120 billion in Treasury and mortgage-backed securities for much of 2020 and 2021, but officials have been tapering those purchases and are on track to stop them entirely in March. By quickly pivoting to allow securities on its now nearly $9 trillion balance sheet to expire without reinvestment — reducing its holdings over time — the central bank would take away an important source of demand for government-backed debt and push rates on those securities higher. That would work together with a higher Fed policy interest rate to make many types of borrowing more expensive.

Higher borrowing costs should weigh on lending and spending, tempering demand and helping to slow price gains, which have been uncomfortably rapid. Fresh data out this week is expected to show further acceleration in the central bank’s preferred inflation gauge, which is already running at its fastest pace in 40 years.

Lael Brainard, a Fed governor who has been nominated by President Joe Biden to serve as vice chair, said last week that she believed a “series” of rate increases were warranted.

“I do anticipate that it will be appropriate, at our next meeting, which is in just a few weeks, to initiate a series of rate increases,” she said Friday at a forum held by the University of Chicago’s Booth School of Business in New York. Brainard said that the Fed would then turn to shrinking its balance sheet, a process that could be appropriate to start “in coming meetings.”

Michelle Bowman, another Fed governor, echoed that balance sheet reduction could start imminently, saying in a speech Monday that the Fed needs to begin to reduce the size of its bond holdings “in the coming months.”

The precise timing of balance sheet shrinking is a topic of debate. John Williams, president of the Federal Reserve Bank of New York, suggested Friday that the process could start “later this year,” which could suggest in coming months or slightly later. But officials have been uniformly clear that a pullback is coming — and likely more quickly than investors had expected until just recently.

Although Fed policymakers plan to shrink their holdings of Treasury bonds and mortgage-backed securities by allowing securities to expire without reinvesting them, rather than by actively selling the debt, the central bank’s latest meeting minutes suggested that officials could eventually move to outright sales of mortgage-tied securities. The minutes also suggested that officials thought “a significant reduction” in the size of the balance sheet would be warranted.

The central bank’s planned moves would be a rapid pace of change compared to the last time they increased interest rates, from 2015 to the end of 2018. Then, officials shrank the balance sheet only gradually and pushed up interest rates glacially, once per quarter at fastest.

Borrowing costs have already begun to rise as investors adjust to the Fed’s more rapid-fire plans. Markets expect six or seven quarter-point interest rate increases this year. The rate on a 30-year mortgage has climbed from about 2.9% last fall — when the Fed began its policy pivot — to 3.9% now.

The Fed’s policy changes “will bring inflation down over time, while sustaining a recovery that includes everyone,” Brainard said, adding that as the Fed signals that it will raise rates, “the market is clearly aligned with that.”

Yet with inflation rapid, wage growth strong and signs of taut labour market conditions plentiful, some Fed officials worry that the central bank needs to move even more quickly.

Bowman, for instance, said she was still open to a half-percentage point increase in March — something her colleague James Bullard, president of the Federal Reserve Bank of St. Louis, has also suggested.

“I will be watching the data closely to judge the appropriate size of an increase at the March meeting,” Bowman said.

But Bullard, who has repeatedly said he would prefer to see rates rise by a full percentage point of rate increases by July, has also noted that he would defer to the chair, Jerome Powell, on the size of the initial increase. And other members of the Fed’s policy-setting committee have suggested that they do not think starting with a half-point increase is necessary, suggesting that a smaller increase may be more likely.

“There’s really no kind of compelling argument that you have to be faster right in the beginning,” Williams, president of the powerful Federal Reserve Bank of New York, told reporters last week.

Federal Reserve officials are coalescing around a plan to raise interest rates steadily starting in March and then move swiftly to shrink the central bank’s big bond holdings as policymakers look to cool the economy at a moment of rapid inflation.

Federal Reserve officials are coalescing around a plan to raise interest rates steadily starting in March and then move swiftly to shrink the central bank’s big bond holdings as policymakers look to cool the economy at a moment of rapid inflation. Policymakers have spent the past week broadcasting that the interest rate increase they plan to make at their March meeting — one that investors already fully expect central bankers to make as they try to tame price increases — will be the first in a string of rate moves. Central bankers also appear to be converging on a plan to promptly start shrinking the Fed’s holdings of government-backed debt, which were vastly expanded during the pandemic downturn as the Fed snapped up bonds in a bid to keep markets functioning and cushion the economy. The central bank bought $120 billion in Treasury and mortgage-backed securities for much of 2020 and 2021, but officials have been tapering those purchases and are on track to stop them entirely in March. By quickly pivoting to allow securities on its now nearly $9 trillion balance sheet to expire without reinvestment — reducing its holdings over time — the central bank would take away an important source of demand for government-backed debt and push rates on those securities higher. That would work together with a higher Fed policy interest rate to make many types of borrowing more expensive. Higher borrowing costs should weigh on lending and spending, tempering demand and helping to slow price gains, which have been uncomfortably rapid. Fresh data out this week is expected to show further acceleration in the central bank’s preferred inflation gauge, which is already running at its fastest pace in 40 years. Lael Brainard, a Fed governor who has been nominated by President Joe Biden to serve as vice chair, said last week that she believed a “series” of rate increases were warranted. “I do anticipate that it will be appropriate, at our next meeting, which is in just a few weeks, to initiate a series of rate increases,” she said Friday at a forum held by the University of Chicago’s Booth School of Business in New York. Brainard said that the Fed would then turn to shrinking its balance sheet, a process that could be appropriate to start “in coming meetings.” Michelle Bowman, another Fed governor, echoed that balance sheet reduction could start imminently, saying in a speech Monday that the Fed needs to begin to reduce the size of its bond holdings “in the coming months.” The precise timing of balance sheet shrinking is a topic of debate. John Williams, president of the Federal Reserve Bank of New York, suggested Friday that the process could start “later this year,” which could suggest in coming months or slightly later. But officials have been uniformly clear that a pullback is coming — and likely more quickly than investors had expected until just recently. Although Fed policymakers plan to shrink their holdings of Treasury bonds and mortgage-backed securities by allowing securities to expire without reinvesting them, rather than by actively selling the debt, the central bank’s latest meeting minutes suggested that officials could eventually move to outright sales of mortgage-tied securities. The minutes also suggested that officials thought “a significant reduction” in the size of the balance sheet would be warranted. The central bank’s planned moves would be a rapid pace of change compared to the last time they increased interest rates, from 2015 to the end of 2018. Then, officials shrank the balance sheet only gradually and pushed up interest rates glacially, once per quarter at fastest. Borrowing costs have already begun to rise as investors adjust to the Fed’s more rapid-fire plans. Markets expect six or seven quarter-point interest rate increases this year. The rate on a 30-year mortgage has climbed from about 2.9% last fall — when the Fed began its policy pivot — to 3.9% now. The Fed’s policy changes “will bring inflation down over time, while sustaining a recovery that includes everyone,” Brainard said, adding that as the Fed signals that it will raise rates, “the market is clearly aligned with that.” Yet with inflation rapid, wage growth strong and signs of taut labour market conditions plentiful, some Fed officials worry that the central bank needs to move even more quickly. Bowman, for instance, said she was still open to a half-percentage point increase in March — something her colleague James Bullard, president of the Federal Reserve Bank of St. Louis, has also suggested. “I will be watching the data closely to judge the appropriate size of an increase at the March meeting,” Bowman said. But Bullard, who has repeatedly said he would prefer to see rates rise by a full percentage point of rate increases by July, has also noted that he would defer to the chair, Jerome Powell, on the size of the initial increase. And other members of the Fed’s policy-setting committee have suggested that they do not think starting with a half-point increase is necessary, suggesting that a smaller increase may be more likely. “There’s really no kind of compelling argument that you have to be faster right in the beginning,” Williams, president of the powerful Federal Reserve Bank of New York, told reporters last week.

US Fed officials firm up plans for a swift pullback of economic help

US Federal Reserve has held its key interest rates near zero and said it plans to continue supporting economic recovery. Fed is maintaining the policies until the economy heals further from the effects of COVID-19 pandemic.

World Business Watch: Powell waves inflation worries away as Fed holds rates near zero

State Bank of India (SBI) announced on Thursday that it has decided to waive maintenance of Average Monthly Balance (AMB) for all savings accounts.

Also read: <a href="https://www.wionews.com/business-economy/sensex-nosedives-over-1500-points-on-global-equity-rout-285189">Sensex nosedives over 1,500 points on global equity rout</a>

The charges on maintaining AMB have been waived off on all 44.51 crore SBI savings bank accounts, according to a press release by the bank.

Currently, SBI Savings Bank customers need to maintain AMB of Rs 3000, Rs 2000 and Rs 1000 in Metro, Semi-Urban and Rural areas respectively. The bank used to levy a penalty of Rs 5 to Rs 15 + taxes on non-maintenance of AMB.

Also read:<a href="https://www.wionews.com/india-news/state-bank-of-india-says-a-49-stake-in-yes-bank-will-cost-331-million-284907"> State Bank of India says a 49% stake in Yes Bank will cost $331 million</a>

The bank has also waived off SMS charges and has also rationalised interest rate on savings bank accounts to a flat 3 per cent per annum for all buckets.

Also read:<a href="https://www.wionews.com/business-economy/market-plunges-1942-points-in-worst-day-for-sensex-ongc-reliance-industries-top-losers-285272"> Market plunges 1,942 points in worst day for Sensex; ONGC, Reliance Industries top losers</a>

Rajnish Kumar, Chairman, SBI announcing the waiver said, "This announcement will bring in more smiles and delight to our valuable customers. Waiving AMB is SBI`s yet another initiative to provide customers with more convenience and elated banking experience. We believe this initiative would empower our customers towards banking with SBI and boost their confidence in SBI."

State Bank of India (SBI) announced on Thursday that it has decided to waive maintenance of Average Monthly Balance (AMB) for all savings accounts. Also read: Sensex nosedives over 1,500 points on global equity rout The charges on maintaining AMB have been waived off on all 44.

State Bank of India (SBI) announced on Thursday that it has decided to waive maintenance of Average Monthly Balance (AMB) for all savings accounts. Also read: Sensex nosedives over 1,500 points on global equity rout The charges on maintaining AMB have been waived off on all 44.51 crore SBI savings bank accounts, according to a press release by the bank. Currently, SBI Savings Bank customers need to maintain AMB of Rs 3000, Rs 2000 and Rs 1000 in Metro, Semi-Urban and Rural areas respectively. The bank used to levy a penalty of Rs 5 to Rs 15 + taxes on non-maintenance of AMB. Also read: State Bank of India says a 49% stake in Yes Bank will cost $331 million The bank has also waived off SMS charges and has also rationalised interest rate on savings bank accounts to a flat 3 per cent per annum for all buckets. Also read: Market plunges 1,942 points in worst day for Sensex; ONGC, Reliance Industries top losers Rajnish Kumar, Chairman, SBI announcing the waiver said, "This announcement will bring in more smiles and delight to our valuable customers. Waiving AMB is SBI`s yet another initiative to provide customers with more convenience and elated banking experience. We believe this initiative would empower our customers towards banking with SBI and boost their confidence in SBI."

Monthly balance maintenance waived off on 44.51 crore SBI savings bank accounts

President Donald Trump wants US "interest rates down to zero, or less," he tweeted Wednesday amid widespread expectations that the Federal Reserve will cut rates later this month.

"We should then start to refinance our debt. Interest cost could be brought way down,&nbsp;while at the same time substantially lengthening the term," he added.

"It is only the naivete of Jay Powell and the Federal Reserve that doesn't allow us to do what other countries are already doing," he asserted.

"A once in a lifetime opportunity that we are missing because of 'Boneheads,"&nbsp;Trump said, in perhaps his most insulting comment to date about the US central bank.

As it becomes increasingly apparent that the US economy has slowed in 2019, in large part because of concerns about Trump's trade war with China, Trump has publicly berated Fed Chair Jerome Powell and the independent Fed for failing to loosen monetary policy fast enough.

The "Federal Reserve should get our interest rates down to zero, or less," Trump said.

Investors overwhelmingly expect the Fed to deliver a 25-basis-point rate cut next week. But cutting to zero would be an extreme move reserved only for a severe economic crisis.

After raising the benchmark lending rate four times last year, to a range of 2.0-2.25 per cent, the central bank cut in July for the first time in more than a decade, partly as insurance against the impact of trade uncertainties on the economy.

Powell has vowed to act to ensure that American economic expansion continues but warned the central bank has no "rulebook" for dealing with trade conflict.

Trump selected Powell to take over Fed leadership but has heaped constant criticism on him for his handling of the policy, even speculating about whether he may be a bigger "enemy" than Beijing.

With many of the world's central banks cutting rates amid signs of flagging economic growth, Trump says the Fed is putting the United States at a disadvantage.

He also has complained about the Fed's efforts to reduce its massive holdings of securities, that were built up during the 2008 global financial crisis after rates were cut to zero in an attempt to shore up the ravaged economy.

"We have the great currency, power, and balance sheet," he tweeted.

While the Fed is not expecting a recession, trade frictions, as well as slower global growth and persistently low inflation, are among the "significant risks" that policymakers are watching, the Fed chair said during a conversation at the University of Zurich on Friday.

The US economic landscape has shifted this year, as business investment has weakened noticeably, manufacturing has fallen into decline and job creation has slowed.

And with other world economies slowing, the US dollar has strengthened as investors find a safe haven in purchases of US assets like government debt.

The stronger dollar tends to make US exports more expensive.

The Fed chair noted, however, that unemployment had remained near historic lows for about 18 months while wages were rising, fueling consumer spending.

Powell, whom Trump promoted to Fed chairman last year, has reiterated that he and his Fed colleagues ignore such comments when they set monetary policy.

President Donald Trump wants US "interest rates down to zero, or less," he tweeted Wednesday amid widespread expectations that the Federal Reserve will cut rates later this month.

President Donald Trump wants US "interest rates down to zero, or less," he tweeted Wednesday amid widespread expectations that the Federal Reserve will cut rates later this month. "We should then start to refinance our debt. Interest cost could be brought way down, while at the same time substantially lengthening the term," he added. "It is only the naivete of Jay Powell and the Federal Reserve that doesn't allow us to do what other countries are already doing," he asserted. "A once in a lifetime opportunity that we are missing because of 'Boneheads," Trump said, in perhaps his most insulting comment to date about the US central bank. As it becomes increasingly apparent that the US economy has slowed in 2019, in large part because of concerns about Trump's trade war with China, Trump has publicly berated Fed Chair Jerome Powell and the independent Fed for failing to loosen monetary policy fast enough. The "Federal Reserve should get our interest rates down to zero, or less," Trump said. Investors overwhelmingly expect the Fed to deliver a 25-basis-point rate cut next week. But cutting to zero would be an extreme move reserved only for a severe economic crisis. After raising the benchmark lending rate four times last year, to a range of 2.0-2.25 per cent, the central bank cut in July for the first time in more than a decade, partly as insurance against the impact of trade uncertainties on the economy. Powell has vowed to act to ensure that American economic expansion continues but warned the central bank has no "rulebook" for dealing with trade conflict. Trump selected Powell to take over Fed leadership but has heaped constant criticism on him for his handling of the policy, even speculating about whether he may be a bigger "enemy" than Beijing. With many of the world's central banks cutting rates amid signs of flagging economic growth, Trump says the Fed is putting the United States at a disadvantage. He also has complained about the Fed's efforts to reduce its massive holdings of securities, that were built up during the 2008 global financial crisis after rates were cut to zero in an attempt to shore up the ravaged economy. "We have the great currency, power, and balance sheet," he tweeted. While the Fed is not expecting a recession, trade frictions, as well as slower global growth and persistently low inflation, are among the "significant risks" that policymakers are watching, the Fed chair said during a conversation at the University of Zurich on Friday. The US economic landscape has shifted this year, as business investment has weakened noticeably, manufacturing has fallen into decline and job creation has slowed. And with other world economies slowing, the US dollar has strengthened as investors find a safe haven in purchases of US assets like government debt. The stronger dollar tends to make US exports more expensive. The Fed chair noted, however, that unemployment had remained near historic lows for about 18 months while wages were rising, fueling consumer spending. Powell, whom Trump promoted to Fed chairman last year, has reiterated that he and his Fed colleagues ignore such comments when they set monetary policy.

Bring interest rates down to zero, or less: Trump to Federal Reserve

Pakistan's central bank raised its main policy rate by 100 basis points on Tuesday to 13.25%, citing increased inflationary pressures and a likely near-term rise in prices from higher utility costs.

The move follows this month's accord with the International Monetary Fund over a $6 billion loan package that comes with tough conditions aimed at cutting Pakistan's substantial fiscal and current account deficits and bolstering its shrinking currency reserves.

Pakistan's central bank raised its main policy rate by 100 basis points on Tuesday to 13.25%, citing increased inflationary pressures and a likely near-term rise in prices from higher utility costs.

Pakistan's central bank raised its main policy rate by 100 basis points on Tuesday to 13.25%, citing increased inflationary pressures and a likely near-term rise in prices from higher utility costs. The move follows this month's accord with the International Monetary Fund over a $6 billion loan package that comes with tough conditions aimed at cutting Pakistan's substantial fiscal and current account deficits and bolstering its shrinking currency reserves.

Pakistan central bank raises key interest rate to 13.25%

The Reserve Bank of India(RBI) today cut repo rate for the third consecutive time this year to 5.75 per cent from the current 6 per cent amid falling economic growth and uncertain global scenario.

The central bank changed its policy stance to accommodative&nbsp;from neutral.

The RBI cut interest rates by 0.25 per cent. India's central bank also cut GDP growth forecast for FY20 from 7.2 per cent to 7 per cent.

"The MPC (monetary policy committee) notes that growth impulses have weakened significantly, a sharp slowdown in investment activity along with a continuing moderation in private consumption growth is a matter of concern," the policy resolution said.&nbsp;

The central bank&nbsp;raised inflation projection to 3-3.1 per cent for April-September.&nbsp;

The six-member monetary policy committee (MPC) headed by Governor Shaktikanta Das concluded its second meeting for the fiscal year 2019-20. On February 7 and April 4, the central bank had reduced the key lending rate by 25 basis points to infuse liquidity and push growth.

Repo rate is the rate at which the RBI lends money to commercial banks. A repo rate cut allows banks to reduce interest rates for consumers on loans, and lowers equal monthly instalments on home loans, car loans and personal loans.

India's economy grew just 6.8 per cent in 2018-19, according to government data. In the fourth quarter (January to March), the growth dipped to 5.8 per cent, marking a five-year low.

The Reserve Bank of India(RBI) today cut repo rate for the third consecutive time this year to 5.75 per cent from the current 6 per cent amid falling economic growth and uncertain global scenario.

The Reserve Bank of India(RBI) today cut repo rate for the third consecutive time this year to 5.75 per cent from the current 6 per cent amid falling economic growth and uncertain global scenario. The central bank changed its policy stance to accommodative from neutral. The RBI cut interest rates by 0.25 per cent. India's central bank also cut GDP growth forecast for FY20 from 7.2 per cent to 7 per cent. "The MPC (monetary policy committee) notes that growth impulses have weakened significantly, a sharp slowdown in investment activity along with a continuing moderation in private consumption growth is a matter of concern," the policy resolution said. The central bank raised inflation projection to 3-3.1 per cent for April-September. The six-member monetary policy committee (MPC) headed by Governor Shaktikanta Das concluded its second meeting for the fiscal year 2019-20. On February 7 and April 4, the central bank had reduced the key lending rate by 25 basis points to infuse liquidity and push growth. Repo rate is the rate at which the RBI lends money to commercial banks. A repo rate cut allows banks to reduce interest rates for consumers on loans, and lowers equal monthly instalments on home loans, car loans and personal loans. India's economy grew just 6.8 per cent in 2018-19, according to government data. In the fourth quarter (January to March), the growth dipped to 5.8 per cent, marking a five-year low.

RBI cuts repo rates to boost growth; lowers GDP growth forecast to 7% in FY20

<a href="https://www.wionews.com/india-news/congress-manifesto-some-ideas-positively-dangerous-says-bjp-207472">Lok Sabha polls 2019: Congress releases manifesto, BJP says some of its ideas 'positively dangerous'</a>

The BJP said Tuesday that some of the ideas in the Congress manifesto were "positively dangerous".&nbsp;

The pushback — the Congress manifesto had been released earlier on Tuesday — was launched by Union Finance Minister Arun Jaitley who said the ideas were "an agenda for the Balkanisation of India".&nbsp;

Jaitley was by and large referring to what the Congress manifesto has said about Kashmir.&nbsp;

&nbsp;

<a href="https://www.wionews.com/business-economy/avoiding-temptation-rbi-likely-to-cut-key-rate-by-just-25-basis-points-207455">Reserve Bank of India likely to cut interest rate by 0.25%: Analysts</a>

The Reserve Bank of India (RBI) is likely to cut its policy interest rate by 25 basis points on Thursday, despite some analysts believing the country's weakening economic growth and subdued inflation outlook warrant a larger reduction.

 
<a href="https://www.wionews.com/india-news/what-exactly-does-the-congress-manifesto-promise-207487">What exactly does the Congress manifesto say?&nbsp;</a>

The Congress released its manifesto for the upcoming Lok Sabha elections on Tuesday, and the BJP was quick to say some of the ideas in it were "positively dangerous".&nbsp;

Union Finance Minister Arun Jaitley went so far as to say some of the ideas in the manifesto were "an agenda for the Balkanisation of India". But what else does the 55-page long Congress manifesto called "Hum Nibhayenge" or "We Will Deliver" say?&nbsp;

&nbsp;

<a href="https://www.wionews.com/world/un-chief-antonio-guterres-warns-against-rising-anti-muslim-hatred-207514">UN chief Antonio Guterres warns against rising anti-Muslim hatred</a>

UN chief Antonio Guterres warned Tuesday against growing hatred of Muslims, less than a month after a deadly attack on mosques in New Zealand killed at least 50 people.

 
<a href="https://www.wionews.com/world/uk-lawmakers-to-try-to-force-pm-may-to-seek-further-brexit-delay-207516">British MPs to try to force PM May to ask for another Brexit delay</a>

A group of British lawmakers said on Tuesday they would try to pass a law which would force Prime Minister Theresa May to seek a delay to Britain's departure from the European Union and thus prevent a chaotic no-deal Brexit on April 12.

Lok Sabha polls 2019: Congress releases manifesto, BJP says some of its ideas 'positively dangerous' The BJP said Tuesday that some of the ideas in the Congress manifesto were "positively dangerous".

Lok Sabha polls 2019: Congress releases manifesto, BJP says some of its ideas 'positively dangerous' The BJP said Tuesday that some of the ideas in the Congress manifesto were "positively dangerous". The pushback — the Congress manifesto had been released earlier on Tuesday — was launched by Union Finance Minister Arun Jaitley who said the ideas were "an agenda for the Balkanisation of India". Jaitley was by and large referring to what the Congress manifesto has said about Kashmir. Reserve Bank of India likely to cut interest rate by 0.25%: Analysts The Reserve Bank of India (RBI) is likely to cut its policy interest rate by 25 basis points on Thursday, despite some analysts believing the country's weakening economic growth and subdued inflation outlook warrant a larger reduction. What exactly does the Congress manifesto say? The Congress released its manifesto for the upcoming Lok Sabha elections on Tuesday, and the BJP was quick to say some of the ideas in it were "positively dangerous". Union Finance Minister Arun Jaitley went so far as to say some of the ideas in the manifesto were "an agenda for the Balkanisation of India". But what else does the 55-page long Congress manifesto called "Hum Nibhayenge" or "We Will Deliver" say? UN chief Antonio Guterres warns against rising anti-Muslim hatred UN chief Antonio Guterres warned Tuesday against growing hatred of Muslims, less than a month after a deadly attack on mosques in New Zealand killed at least 50 people. British MPs to try to force PM May to ask for another Brexit delay A group of British lawmakers said on Tuesday they would try to pass a law which would force Prime Minister Theresa May to seek a delay to Britain's departure from the European Union and thus prevent a chaotic no-deal Brexit on April 12.

News brief: Big stories of the day

The <a href="https://www.wionews.com/business-economy/reserve-bank-of-india-board-approves-rs-28000-crore-interim-dividend-to-government-198155">Reserve Bank of India (RBI)</a>&nbsp;is likely to cut its policy interest rate by 25 basis points on Thursday, despite some analysts believing the country's weakening economic growth and subdued inflation outlook warrant a larger reduction.

The RBI's six-member monetary policy committee (MPC) began its three-day review on Tuesday, and most analysts expected it to take a cautious approach given uncertainty over who will lead the government after the coming election and what their fiscal policy will be.

Campaigning for votes, political parties have been promising dole-outs including direct cash payments to poor people if they win power, stoking potential inflation fears.

The inflation outlook could also be upset by the perennial risk of sharply higher food prices if the monsoon season rains disappoint.

With that in mind, more than 85 per cent of the nearly 70 economists polled by Reuters expected the RBI to cut its benchmark lending rate, the repo rate, by 25 basis points to 6.00 per cent on April 4.

Yet, India's debt market appears to have priced in a 50 basis-point cut.

Trading at 5.90 per cent, the one-year interest rate swap works out at 5.75 per cent on a daily basis, putting it 50 basis points below the current repo rate, according to rate derivative dealers.

"I think the RBI will be more cautious than what the market is expecting," said Abheek Barua, chief economist at HDFC Bank in New Delhi.

"We haven't fallen off the cliff yet for a 50 basis point cut," he said.

Whereas Prime Minister Narendra Modi's administration clashed with the RBI's previous leadership on several issues including rate cuts last year, relations improved after the government appointed Governor Shaktikanta Das in December.

Officials with knowledge of the government's thinking on monetary policy said there was no pressure on the RBI to make a sharper rate cut at this time, despite economic growth weakening to 6.6 per cent in December quarter, its slowest in five quarters, and the unemployment rate hitting a multi-decade high.

"The mandate of the MPC is to focus on inflation and if inflation is below the target it should cut the rate," said an official privy to policy discussions.

"Ideally there is a scope for 50 basis point cut now, but one has to be careful of any upside risks to inflation as well," the official added.

Annual retail inflation was just 2.57 per cent in February following five months of deflation in food prices, and the RBI has projected a rise to 3.9 per cent by the end of December. But that could change quickly if the monsoon fails or global oil prices surge.

"We do not expect a drastic cut from the RBI, a calibrated approach would be our expectation, 25 basis points (bps) is more likely in our view. But, that is a call RBI has to take," said a second government official.

The MPC could be reluctant to make a deeper cut in any case, as banks only reduced their lending rates by a token 5-10 basis points after the RBI's last 25 bps cut in February.

"Savings growth has come down sharply and every bank is competing with another to attract depositors," said a top banker at a very large state bank in India.

"Under such circumstance, we won't be able to lower deposit rates, and in that case, there is no room to cut lending rates," he said, declining to be named due to sensitivity over relations with the central bank.

The Reserve Bank of India (RBI) is likely to cut its policy interest rate by 25 basis points on Thursday, despite some analysts believing the country's weakening economic growth and subdued inflation outlook warrant a larger reduction.

The Reserve Bank of India (RBI) is likely to cut its policy interest rate by 25 basis points on Thursday, despite some analysts believing the country's weakening economic growth and subdued inflation outlook warrant a larger reduction. The RBI's six-member monetary policy committee (MPC) began its three-day review on Tuesday, and most analysts expected it to take a cautious approach given uncertainty over who will lead the government after the coming election and what their fiscal policy will be. Campaigning for votes, political parties have been promising dole-outs including direct cash payments to poor people if they win power, stoking potential inflation fears. The inflation outlook could also be upset by the perennial risk of sharply higher food prices if the monsoon season rains disappoint. With that in mind, more than 85 per cent of the nearly 70 economists polled by Reuters expected the RBI to cut its benchmark lending rate, the repo rate, by 25 basis points to 6.00 per cent on April 4. Yet, India's debt market appears to have priced in a 50 basis-point cut. Trading at 5.90 per cent, the one-year interest rate swap works out at 5.75 per cent on a daily basis, putting it 50 basis points below the current repo rate, according to rate derivative dealers. "I think the RBI will be more cautious than what the market is expecting," said Abheek Barua, chief economist at HDFC Bank in New Delhi. "We haven't fallen off the cliff yet for a 50 basis point cut," he said. Whereas Prime Minister Narendra Modi's administration clashed with the RBI's previous leadership on several issues including rate cuts last year, relations improved after the government appointed Governor Shaktikanta Das in December. Officials with knowledge of the government's thinking on monetary policy said there was no pressure on the RBI to make a sharper rate cut at this time, despite economic growth weakening to 6.6 per cent in December quarter, its slowest in five quarters, and the unemployment rate hitting a multi-decade high. "The mandate of the MPC is to focus on inflation and if inflation is below the target it should cut the rate," said an official privy to policy discussions. "Ideally there is a scope for 50 basis point cut now, but one has to be careful of any upside risks to inflation as well," the official added. Annual retail inflation was just 2.57 per cent in February following five months of deflation in food prices, and the RBI has projected a rise to 3.9 per cent by the end of December. But that could change quickly if the monsoon fails or global oil prices surge. "We do not expect a drastic cut from the RBI, a calibrated approach would be our expectation, 25 basis points (bps) is more likely in our view. But, that is a call RBI has to take," said a second government official. The MPC could be reluctant to make a deeper cut in any case, as banks only reduced their lending rates by a token 5-10 basis points after the RBI's last 25 bps cut in February. "Savings growth has come down sharply and every bank is competing with another to attract depositors," said a top banker at a very large state bank in India. "Under such circumstance, we won't be able to lower deposit rates, and in that case, there is no room to cut lending rates," he said, declining to be named due to sensitivity over relations with the central bank.

Reserve Bank of India likely to cut interest rate by 0.25%: Analysts

The Reserve Bank is likely to maintain status-quo on interest rate in the upcoming monetary policy review on December 5 despite moderation in economic growth and easing inflation, opined experts.

After back-to-back hikes since June, the RBI had kept interest rates unchanged in the previous policy review in October, surprising markets that had expected a rate hike to support the tumbling rupee and combat inflationary pressures from high oil prices.

The repo rate, at which RBI lends to other banks, was left unchanged at 6.50 per cent.

The six-member Monetary Policy Committee (MPC), headed by RBI Governor Urjit Patel, will meet for three days starting December 3 for the fifth bi-monthly monetary policy review of the current financial year.

The MPC's decision will be announced in the afternoon of December 5.

Since the previous policy announcement, the rupee has appreciated against the US dollar and moved above the psychologically crucial mark of 70.

Global crude oil prices too have softened significantly, slipping below USD 60 per barrel from USD 86.

However, India's economic growth slowed to 7.1 per cent in the September quarter after peaking to an over two-year high in the first three months of this fiscal, as consumption demand moderated and farm sector displayed signs of weakness.

The growth in Gross Domestic Product (GDP) in July-September is the lowest in three quarters but better than 6.3 per cent in the same period of the previous year.

The Indian economy had grown by 8.2 per cent in the first quarter of the current fiscal year that began in April, according to data released by the Central Statistics Office (CSO).

Kotak Research said the MPC in its last policy had estimated inflation at 3.9-4.5 per cent in the second half of the fiscal and 4.8 per cent in the first quarter of next year.&nbsp;

It expects the inflation at 2.9-4.3 per cent in the second half of the fiscal and 4.5 per cent in the first quarter of 2019-20.&nbsp;

"The softer-than-expected inflation prints are on the back of benign food inflation, especially as most Kharif crop prices remain well below the MSP prices.&nbsp;

"While softer retail fuel prices will push core inflation lower, there will be a significant divergence from headline inflation mainly on the back of higher prices of education and health," Kotak Research said, adding that it expects RBI to maintain status-quo.

Devendra Kumar Pant, Chief Economist, India Ratings and Research (Fitch Group), said 2018-19 may still end up with a GDP growth of 7.3 per cent and "RBI may get the much-needed elbow room to keep the policy rate unchanged in the forthcoming bi-monthly policy review on 5 December 2018".

Retail inflation based on Consumer Price Index (CPI) fell to a one-year low of 3.31 per cent in October on the back of cheaper kitchen staples, fruits and protein-rich items, as per latest available data.

It was 3.7 per cent in September 2018 and 3.58 per cent in October 2017. The retail inflation number is the lowest since September 2017, when it touched 3.28 per cent. PTI

The Reserve Bank is likely to maintain status-quo on interest rate in the upcoming monetary policy review on December 5 despite moderation in economic growth and easing inflation, opined experts.

The Reserve Bank is likely to maintain status-quo on interest rate in the upcoming monetary policy review on December 5 despite moderation in economic growth and easing inflation, opined experts. After back-to-back hikes since June, the RBI had kept interest rates unchanged in the previous policy review in October, surprising markets that had expected a rate hike to support the tumbling rupee and combat inflationary pressures from high oil prices. The repo rate, at which RBI lends to other banks, was left unchanged at 6.50 per cent. The six-member Monetary Policy Committee (MPC), headed by RBI Governor Urjit Patel, will meet for three days starting December 3 for the fifth bi-monthly monetary policy review of the current financial year. The MPC's decision will be announced in the afternoon of December 5. Since the previous policy announcement, the rupee has appreciated against the US dollar and moved above the psychologically crucial mark of 70. Global crude oil prices too have softened significantly, slipping below USD 60 per barrel from USD 86. However, India's economic growth slowed to 7.1 per cent in the September quarter after peaking to an over two-year high in the first three months of this fiscal, as consumption demand moderated and farm sector displayed signs of weakness. The growth in Gross Domestic Product (GDP) in July-September is the lowest in three quarters but better than 6.3 per cent in the same period of the previous year. The Indian economy had grown by 8.2 per cent in the first quarter of the current fiscal year that began in April, according to data released by the Central Statistics Office (CSO). Kotak Research said the MPC in its last policy had estimated inflation at 3.9-4.5 per cent in the second half of the fiscal and 4.8 per cent in the first quarter of next year. It expects the inflation at 2.9-4.3 per cent in the second half of the fiscal and 4.5 per cent in the first quarter of 2019-20. "The softer-than-expected inflation prints are on the back of benign food inflation, especially as most Kharif crop prices remain well below the MSP prices. "While softer retail fuel prices will push core inflation lower, there will be a significant divergence from headline inflation mainly on the back of higher prices of education and health," Kotak Research said, adding that it expects RBI to maintain status-quo. Devendra Kumar Pant, Chief Economist, India Ratings and Research (Fitch Group), said 2018-19 may still end up with a GDP growth of 7.3 per cent and "RBI may get the much-needed elbow room to keep the policy rate unchanged in the forthcoming bi-monthly policy review on 5 December 2018". Retail inflation based on Consumer Price Index (CPI) fell to a one-year low of 3.31 per cent in October on the back of cheaper kitchen staples, fruits and protein-rich items, as per latest available data. It was 3.7 per cent in September 2018 and 3.58 per cent in October 2017. The retail inflation number is the lowest since September 2017, when it touched 3.28 per cent. PTI

RBI likely to keep interest rate unchanged on December 5

US job creation accelerated in January, as labor markets continued to absorb workers at a robust pace, unemployment clung to a record low and wages moved higher, the government reported Friday.

The world&#39;s largest economy added 200,000 net new positions in the month, more than expected, driven by gains in construction, retail, restaurants and health care, the Labour Department reported.

The result beat forecasts, which predicted an increase of 180,000, and helped offset December&#39;s disappointing result.

Meanwhile, the unemployment rate remained at 4.1 percent for the fourth month in a row.

Hourly wages continued to rise for the month as labour markets remained tight -- with wages posting their largest 12-month increase in more than nine years. &nbsp;

That will strengthen the case for the Federal Reserve to raise the benchmark interest rate in March, as it is widely expected to do.

Hourly wages rose 0.3 percent from the prior month to $26.74, putting worker pay up 2.9 percent compared to January of last year, the largest 12-month gain since June 2009.

Over the same period, the consumer price index gained 2.1 percent, seasonally adjusted, but rising wages would be expected to put more pressure on prices.

The solid job gains were sure to be a relief for an embattled White House, as President Donald Trump has taken credit for the extended run of good economic news amid political turmoil.

Hiring by speciality trade contractors drove job creation in the construction sector, which added 36,000 new positions, while restaurants and bars added 31,000 new jobs.

The ranks of health care workers swelled for the month as well, adding 21,000 new positions.

Revisions to November and December subtracted a net 24,000 positions, bringing average job creation over the last three months of the year to 192,000, beating the 2017 monthly average of 181,000.

With the 4.1 percent unemployment rate, a 17-year-low, the ranks of the long-term unemployed -- those looking for work for 27 weeks or longer -- continued to drop, falling six percent to 1.4 million.

However, the unemployment rate for African-Americans, which Trump hailed this week in his State of the Union address, rose nine-tenths of a percentage point to 7.7 percent, just below the 7.8 percent in January last year.

Trump took office a year ago, pledging to create 25 million new jobs over a decade or just over 200,000 per month.

However, Labor Department figures released Friday show the economy added 2.17 million jobs in 2017, fewer than 2016 when there were 2.34 million new jobs.

The world's largest economy added 200,000 net new positions in the month, more than expected, driven by gains in construction, retail, restaurants and health care, the Labour Department reported

US job creation accelerated in January, as labor markets continued to absorb workers at a robust pace, unemployment clung to a record low and wages moved higher, the government reported Friday. The world's largest economy added 200,000 net new positions in the month, more than expected, driven by gains in construction, retail, restaurants and health care, the Labour Department reported. The result beat forecasts, which predicted an increase of 180,000, and helped offset December's disappointing result. Meanwhile, the unemployment rate remained at 4.1 percent for the fourth month in a row. Hourly wages continued to rise for the month as labour markets remained tight -- with wages posting their largest 12-month increase in more than nine years. That will strengthen the case for the Federal Reserve to raise the benchmark interest rate in March, as it is widely expected to do. Hourly wages rose 0.3 percent from the prior month to $26.74, putting worker pay up 2.9 percent compared to January of last year, the largest 12-month gain since June 2009. Over the same period, the consumer price index gained 2.1 percent, seasonally adjusted, but rising wages would be expected to put more pressure on prices. The solid job gains were sure to be a relief for an embattled White House, as President Donald Trump has taken credit for the extended run of good economic news amid political turmoil. Hiring by speciality trade contractors drove job creation in the construction sector, which added 36,000 new positions, while restaurants and bars added 31,000 new jobs. The ranks of health care workers swelled for the month as well, adding 21,000 new positions. Revisions to November and December subtracted a net 24,000 positions, bringing average job creation over the last three months of the year to 192,000, beating the 2017 monthly average of 181,000. With the 4.1 percent unemployment rate, a 17-year-low, the ranks of the long-term unemployed -- those looking for work for 27 weeks or longer -- continued to drop, falling six percent to 1.4 million. However, the unemployment rate for African-Americans, which Trump hailed this week in his State of the Union address, rose nine-tenths of a percentage point to 7.7 percent, just below the 7.8 percent in January last year. Trump took office a year ago, pledging to create 25 million new jobs over a decade or just over 200,000 per month. However, Labor Department figures released Friday show the economy added 2.17 million jobs in 2017, fewer than 2016 when there were 2.34 million new jobs.

US adds 200,000 new jobs in January

The Reserve Bank is likely to keep the key rate unchanged on Wednesday and stay focused on inflation control as the rebound in September quarter GDP growth - after a five quarter decline - seemed to have eased pressure on it to lower rates, experts said.

India Inc, however, is demanding interest rate cut to further build on positive sentiment generated by the rebound and upgrade of the country&#39;s sovereign rating by Moody&#39;s.

The Monetary Policy Committee (MPC), headed by RBI Governor Urjit Patel, will meet on December 5 and 6 for the Fifth Bi-monthly Monetary Policy Statement for 2017-18. The resolution of the MPC will be made public on December 6.

In its October review, it had kept the benchmark interest rate unchanged on fears of rising inflation while lowering growth forecast to 6.7 per cent for the current fiscal.

The central bank had reduced the benchmark lending rate by 0.25 percentage points to 6 per cent in August, bringing it to a 6-year low.

Bankers and experts are of the view that the RBI for the second time in a row may key repo-rate or short-term lending rate unchanged as inflation trajectory is likely to remain upward in the coming months.

&quot;It&#39;s going to be a status quo. The liquidity in the system is very low, deposit rates are firming up and there are concerns about inflation,&quot; said Union Bank MD and CEO Rajkiran Rai G.

Global financial services major Nomura said while lower GST rates have moderated output prices, input cost pressures are marginally higher, which along with higher food inflation is likely to push retail inflation slightly above the RBI midpoint target of 4 per cent in November and beyond.

&quot;We expect a hawkish hold from the RBI..And policy rates to remain unchanged through 2018,&quot; it said in a report.

Wholesale prices-based inflation had shot up to a 6-month high of 3.59 per cent in October. The retail inflation (Consumer Price Index) for October rose to a 7-month high of 3.58 per cent.

Meanwhile, industry body Ficci said there has been positive news in the form of improvement in ease of doing business rankings, Moody?s upgrade of India&#39;s rating and the massive recapitalisation plan for banks.

&quot;This is a good opportunity to further build the confidence levels. The monetary policy announcement next week will be a perfect timing to give another shot to boost the sentiment,&quot; said Ficci President Pankaj Patel in a statement.

Reversing a five-quarter slide in GDP growth, Indian economy bounced back from a three-year low to expand by 6.3 per cent in the July-September period as manufacturing revved up and businesses adjusted to the new GST tax regime.

The GDP growth in the second quarter of 2017-18 compares to 5.7 per cent in April-June.

Credit rating firm ICRA has said RBI is likely to keep the key policy rate unchanged at 6 per cent as it expects retail inflation to firm up in the coming months.

It said the (MPC) would leave the repo rate unchanged at 6 per cent &quot;in a non-unanimous decision in the December 2017 policy review, given the expectation of a further rise in the CPI inflation in the coming months&quot;.

With gross value added (GVA) growth estimated by the Central Statistics Office at 5.8 per cent in first half of FY&#39;18, a downward bias is likely to be placed on the MPC&#39;s baseline forecast for growth of GVA at basic prices of 6.7 per cent for ongoing fiscal.&nbsp;

The Monetary Policy Committee headed by RBI Governor Urjit Patel will meet on December 5 and 6 for the Fifth Bi-monthly Monetary Policy Statement for 2017-18

The Reserve Bank is likely to keep the key rate unchanged on Wednesday and stay focused on inflation control as the rebound in September quarter GDP growth - after a five quarter decline - seemed to have eased pressure on it to lower rates, experts said. India Inc, however, is demanding interest rate cut to further build on positive sentiment generated by the rebound and upgrade of the country's sovereign rating by Moody's. The Monetary Policy Committee (MPC), headed by RBI Governor Urjit Patel, will meet on December 5 and 6 for the Fifth Bi-monthly Monetary Policy Statement for 2017-18. The resolution of the MPC will be made public on December 6. In its October review, it had kept the benchmark interest rate unchanged on fears of rising inflation while lowering growth forecast to 6.7 per cent for the current fiscal. The central bank had reduced the benchmark lending rate by 0.25 percentage points to 6 per cent in August, bringing it to a 6-year low. Bankers and experts are of the view that the RBI for the second time in a row may key repo-rate or short-term lending rate unchanged as inflation trajectory is likely to remain upward in the coming months. "It's going to be a status quo. The liquidity in the system is very low, deposit rates are firming up and there are concerns about inflation," said Union Bank MD and CEO Rajkiran Rai G. Global financial services major Nomura said while lower GST rates have moderated output prices, input cost pressures are marginally higher, which along with higher food inflation is likely to push retail inflation slightly above the RBI midpoint target of 4 per cent in November and beyond. "We expect a hawkish hold from the RBI..And policy rates to remain unchanged through 2018," it said in a report. Wholesale prices-based inflation had shot up to a 6-month high of 3.59 per cent in October. The retail inflation (Consumer Price Index) for October rose to a 7-month high of 3.58 per cent. Meanwhile, industry body Ficci said there has been positive news in the form of improvement in ease of doing business rankings, Moody?s upgrade of India's rating and the massive recapitalisation plan for banks. "This is a good opportunity to further build the confidence levels. The monetary policy announcement next week will be a perfect timing to give another shot to boost the sentiment," said Ficci President Pankaj Patel in a statement. Reversing a five-quarter slide in GDP growth, Indian economy bounced back from a three-year low to expand by 6.3 per cent in the July-September period as manufacturing revved up and businesses adjusted to the new GST tax regime. The GDP growth in the second quarter of 2017-18 compares to 5.7 per cent in April-June. Credit rating firm ICRA has said RBI is likely to keep the key policy rate unchanged at 6 per cent as it expects retail inflation to firm up in the coming months. It said the (MPC) would leave the repo rate unchanged at 6 per cent "in a non-unanimous decision in the December 2017 policy review, given the expectation of a further rise in the CPI inflation in the coming months". With gross value added (GVA) growth estimated by the Central Statistics Office at 5.8 per cent in first half of FY'18, a downward bias is likely to be placed on the MPC's baseline forecast for growth of GVA at basic prices of 6.7 per cent for ongoing fiscal.

RBI likely to keep interest rate on hold for second time in row

Germany issued a &nbsp;ten-year bond at a negative interest for the first time today, selling more than 4.0 billion Euros ($4.5 billion) with a yield of minus 0.05 per cent, the German central bank or Bundesbank said.&nbsp; 
 
The &nbsp;ten-year German government bond or &quot;Bund&quot; acts as a benchmark on the debt markets and regarded as one of the safest investments. 
 
It is the first time that investors have accepted negative returns in the first issue of a bond, meaning they will pay for the privilege of owning rock-solid German bonds amid fears about the consequences of the British vote to quit the European union and economic worries.&nbsp; 
 
While borrowers traditionally pay interest on the money they are loaned, in the face of heightened political and economic uncertainty, those interest rates have come down to record lows recently as investors flock to safe havens to park their cash. 
 
By accepting negative yields, investors are effectively ditching any hope of a return on their investment in what seems a reasonable price to pay to escape the uncertainties of falling stock markets or volatile commodities and currencies. 
 
Interest rates on sovereign debt have been low for some time as central banks snap up government bonds from investors in an effort to boost economic growth through increased liquidity. 
 
The European Central Bank has slashed its key interest rates to zero and launched a massive bond-buying programme known as quantitative easing (QE) in a bid to get the eurozone economy back on its feet and push inflation higher. 
 
Germany is just one of three countries in the euro area and six in the European Union to enjoy a top-notch triple-A rating on its sovereign debt.&nbsp; 
 
(AFP)

The bond or 'Bund' acts as a benchmark on the debt markets and regarded as one of the safest investments

Germany issued a ten-year bond at a negative interest for the first time today, selling more than 4.0 billion Euros ($4.5 billion) with a yield of minus 0.05 per cent, the German central bank or Bundesbank said. The ten-year German government bond or "Bund" acts as a benchmark on the debt markets and regarded as one of the safest investments. It is the first time that investors have accepted negative returns in the first issue of a bond, meaning they will pay for the privilege of owning rock-solid German bonds amid fears about the consequences of the British vote to quit the European union and economic worries. While borrowers traditionally pay interest on the money they are loaned, in the face of heightened political and economic uncertainty, those interest rates have come down to record lows recently as investors flock to safe havens to park their cash. By accepting negative yields, investors are effectively ditching any hope of a return on their investment in what seems a reasonable price to pay to escape the uncertainties of falling stock markets or volatile commodities and currencies. Interest rates on sovereign debt have been low for some time as central banks snap up government bonds from investors in an effort to boost economic growth through increased liquidity. The European Central Bank has slashed its key interest rates to zero and launched a massive bond-buying programme known as quantitative easing (QE) in a bid to get the eurozone economy back on its feet and push inflation higher. Germany is just one of three countries in the euro area and six in the European Union to enjoy a top-notch triple-A rating on its sovereign debt. (AFP)

Germany issues 10-year bond at negative interest rate for first time

interest-rate

Interest Rate, News on Interest Rate, stories on Interest Rate, articles on Interest Rate, Interest Rate stories at Wion, Interest Rate news, Interest Rate latest news