Rate Hikes

The Monetary Policy Committee (MPC) of the RBI is likely to maintain status quo in the upcoming April monetary policy while remaining cautious on inflation, according to a Moneycontrol poll of at least 21 economists, bankers and fund managers. Experts pointed out that higher growth in GDP gives the central bank room to focus more on lowering inflation. Will there be any changes to growth and inflation forecasts? Watch this chat between Nandita Khemka and Moneycontrol’s Banking Editor Dinesh Unnikrishnan to know more about what to expect.

Hurting from rate hikes? The US Fed looks as if it’s finally done 

It took longer to get to the end of the tightening cycle than most expected. History suggests that the gap between the end of a rate-hike cycle and the start of a rate-cut cycle rarely exceeds a year. But as pent-up demand from the pandemic recedes, it’s no longer easy to predict areas of the economy likely to surprise

LIVE: Repo rate unchanged | Post monetary policy press conference by RBI Governor Shaktikanta Das

Reserve Bank of India Governor Shaktikanta Das announces the second bi-monthly monetary policy for the current fiscal. Watch the announcements on repo rates, inflation, growth forecasts.

Rate Hikes: New Zealand's central bank owns this recession

The country was an early mover in raising rates lifting borrowing costs a cumulative 5.25 percentage points in 20 months, a brisker clip than the US Fed. Governor Adrian Orr had forthrightly stated that he was inducing a recession with aggressive interest-rate hikes. Now with GDP declining in successive quarters, the central bank will be held responsible for the downturn, its depth and duration

Global stocks fall, dollar rises as investors weigh further rate hikes

Investors also weighed data Friday showing U.S. business activity growth slowed in June but services kept humming along.

Jay Powell struggles to explain ‘hawkish pause’ to sceptical economists

Federal Reserve takes a breather on rate rises but signals even more tightening ahead

Rate Hikes: US Federal Reserve may be nowhere near done yet

Some policymakers are clearly getting uncomfortable with the way that inflation is reacting — or failing to react — to the 500 basis points of rate increases since March 2022. Inflation isn’t accelerating, but it’s not coming down, either and this suggests a risk of rates having to go to 6 percent or 6.25 percent

Deutsche Bank forecasts earlier, milder recession for the US

The US Federal Reserve has hiked interest rates 10 times consecutively since March 2022 to tame inflation. This is on record one of US central bank’s most aggressive rate-hike cycles in recent history

If US Fed wants to be true to inflation target, it should hike: Mohamed El-Erian

At its last meeting, the US central bank raised funds rate by 25 basis points to a range of 5 to 5.25 percent, the highest since 2007. The Federal Open Market Committee is to meet on June 13

US in throes of credit crunch as bank deposits shrink $1 tn: Morgan Stanley's Mike Wilson

Wilson's concerns are supported by recent data showing that credit availability for small businesses has seen its largest drop in 20 years as per a recent survey from the National Federation of Independent Business, alongside the highest interest rates seen in 15 years.

Three indicators which show the US economy may be slowing down

The US added 236,000 jobs in March just beating estimates. Wall street will acknowledge the same report once the markets open.

Fed is set to hike rates to 6% or more. Will RBI follow suit?

Hopes of the Federal Reserve ‘pivot’ have faded on the back of robust economic data. Markets fear the Fed funds rate could rise to over 6 percent.

Gold faces worst month since June 2021 as rate-hike fears dominate

Gold prices touched their highest since April 2022 in early February, but soon reversed course. Bullion has fallen more than 5% so far this month after strong economic data boosted expectations of more rate hikes.

Uday Kotak thinks central banks will hike rates for longer

The Kotak Mahindra Bank Chief Executive Officer had earlier warned India of three risks - sticky inflation, Russia’s unpredictable actions, and China becoming numero uno

How Budget 2023 paves the way for RBI to pause rate hike after February

The budget’s fiscal rectitude would be music to the ears of the members of RBI’s interest rate-setting panel, which will be meeting for a policy review on February 6-8

India monetary policy pivot towards growth around the corner, Nomura says

The brokerage pencils in one more rate hike in February and then 75 basis points of cumulative rate cuts in the second half of 2023

World’s top money managers see global stocks recovering in 2023

Amid recent optimism that inflation has peaked — and that the Federal Reserve could soon start to change its tone — 71 percent of respondents in a Bloomberg News survey expect equities to rise, versus 19 percent forecasting declines

Foreign investors pick up Indian equities worth $3 billion in last 10 sessions

The primary market would be buzzing with a lot of activity as four companies have lined up their public offers, analysts said. Better-than-expected economic data and September quarter earnings have kept the sentiment upbeat

S&P 500 ends lower, snapping rally on mounting slowdown fears

The S&P 500 and the Nasdaq ended in negative territory, dragged lower by market-leading tech and tech-adjacent companies following results from Microsoft and Alphabet. The blue-chip Dow eked out a nominal gain

MC Explains | Slowing down monetary tightening will be the right call for India

Several economies that had raised rates sharply early on are still facing elevated inflation. India must bide its time to ensure growth is not dented more than required

ECB to cross 2008 Rubicon with hike defying slump risk: Eco Week

Memories of what’s now perceived as a policy mistake in 2008 might yet come to haunt the ECB, especially as rates go even higher and begin to constrict growth in due course. Such a prospect is likely to make future hiking decisions in 2023 more contentious, even if this one won’t be

RBI to revert to baby steps approach to monetary tightening

India’s Monetary Policy Committee has raised the key policy repo rate by 190 basis points since early May as it shifted focus to inflation from growth.

Guardians of world economy told to ‘buckle up’ as outlook dims

With about 60 percent of the world’s 75 poorest countries already in or at risk of debt distress, finance chiefs ranging from Treasury Secretary Janet Yellen to Zambia’s Situmbeko Musokotwane urged richer nations to do more to help vulnerable ones restructure their debt

With inflation disappointing, what’s the outlook for the economy and markets?

The persistence of high inflation and rate hikes by central banks will exacerbate already weak growth 

Wall Street ends in a hole after Powell's Jackson Hole speech on rate hikes

The US economy will need tight monetary policy "for some time" before inflation is under control, Powell said at the event. That means slower growth, a weaker job market and "some pain" for households and businesses, he added