Take for instance, The State Bank of India (SBI) country’s largest lender slashed its lending rate by 0.40 per cent. The new rate will stand at 9.30 per cent from 5 October onward.
First, the Reserve Bank of India has been saying that monetary policy will be in the neutral gear when policy interest rates are two percentage points above the inflation rate.
India’s central bank slashed its key repo rate by 50 basis points to 6.75% at its September policy meeting, describing the decision as a “front-loaded policy action” that was twice the size expected by the markets. If inflation is low, it will position the OCR...
The report, by Rebecca Williams and Adam Richardson, says it is important the Reserve Bank knows what a neutral rate would be, so it can gauge how expansionary or contractionary its current monetary policy settings are for the market.
To help maintain liquidity in the mortgage market, the committee will continue to reinvest principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities, as well as rolling over maturing Treasury securities at...
“Most FOMC participants, including myself, now anticipate that achieving these conditions will likely entail an initial increase in the federal funds rate later this year, followed by a gradual pace of tightening thereafter“, Yellen said. The late sell-off on Friday...
The Reserve Bank today published a report detailing how it estimates New Zealand’s neutral interest rate. The time for a further 25-bps rate cut is appropriate now.
“Asset classes like gold are still expensive and they are fundamentally likely to suffer if US rates go up, if the dollar remain strong“, Manpreet Gill, head of fixed income, currency and commodities investment strategy at Standard Chartered Plc, said in an interview...
That dilemma was compounded by “the (domestic) combination of sharply slowing growth and rising inflation“, bank Governor Lesetja Kganyago told a news conference after it cut its 2015 economic growth forecast to 1.5 percent from 2.0 percent.
Yao said the Fed should set objective conditions that will trigger a rate hike, such as inflation, unemployment and risks of property and housing bubbles.