Britain‘s inflation fever may be starting to break, but data due out this week is expected to show the economy has more cooling to do before the Bank of England can change course on interest rates. Official statistics are slated to show Tuesday that wages accelerated to the fastest pace on record in July, pushing … Read more
The 0.25 per cent hike in interest rates by the US Fed was on expected lines, analysts said on Thursday, expecting its Indian counterpart to take a balanced view in its policy formation going forward. Naveen Kulkarni, chief investment officer of Axis Securities PMS, said the action in the US was on expected lines and … Read more
The European Central Bank raised interest rates for the ninth straight time in its yearlong campaign to stamp out painfully high inflation, even as worries about recession fuel speculation that Thursday’s hike could be its last. ECB President Christine Lagarde had all but promised the quarter-percentage point increase. That puts the focus at her post-meeting … Read more
Bond investors are having to regroup after last week’s Federal Reserve meeting dealt a crippling blow to a strategy that many on Wall Street had banked on at the start of the year.Back then, wagering that short-term yields would decline relative to longer-term ones seemed a sure bet with the Fed expected to finally stop … Read more
Mumbai: Central banks, home and away, may have paused tightening rates, but their undiminished emphasis on inflationary risks has dashed expectations of an early resumption of the easing cycle. Rather, a key market gauge is now pencilling in a reduction in the cost of funds only in April 2024. Overnight Indexed Swap (OIS) rates, an … Read more
Mumbai: India’s sovereign bond market, a barometer for broader borrowing costs in the economy, has seen transaction volumes jump to their highest in eight months as most traders believe expectations of moderating consumer inflation through the summer indicate the central bank has reached its intended terminal rates in the current cycle. Increasing conviction that the … Read more
JPMorgan Chase & Co. posted a 52% jump in its first quarter profits, helped by higher interest rates, which allowed the bank to charge customers more for loans. The bank saw deposits grow noticeably, as business and customers flocked to the banking titan after the failure of Silicon Valley Bank and Signature Bank. With JPMorgan’s … Read more
India’s annual retail inflation for March eased below the central bank‘s upper tolerance level for the first time this year, as food prices softened. Annual retail inflation eased to 5.66% in March from 6.44% in the previous month, government data showed on Wednesday. The Reserve Bank of India targets a range of 2%-6%. A Reuters … Read more
The consolidation phase for Indian equities is set to continue for the next couple of quarters, as monetary conditions are tight, and growth is expected to slow down. As a result, Manish Gunwani of Bandhan Mutual Fund believes it is time to remain at average allocation to equities. “Investors based on their risk appetite should … Read more
The stars are aligning in favour of a popular currency trade that benefits from attractive yields and low volatility – even as markets come off one of the most turbulent months in years. Signs that the US economy is slowing down and global interest rates are peaking are setting the stage for investors to revive … Read more