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Nothing can move Rajan to reduce rates except the economic fundamentals.

Banking stocks continue to reel in the wake of the Fed decision as hopes that higher rates would translate to fatter profits on loans have been dashed.

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.

The fears were strong enough for the Fed to leave its benchmark interest rate at 0%, where it’s been since the depths of the financial crisis in 2008.

Reserve Bank governor Lesetja Kganyago has announced that the Reserve Bank’s repo rate will remain unchanged “for now”.

The Dow Jones closed down 65.21 points at 16,674, while the S&P 500 fell 5 points to 1,990.

‘A neutral 90-day bank bill rate is now under 3.5%’.

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.

“The MPC has decided unanimously to keep the repurchase rate unchanged for now at 6% per annum”.

Platinum clawed back some ground lost from a four-day rout on fears about demand from the vehicle sector following the Volkswagen emissions scandal.

Among other precious metals, platinum slid for a fifth session out of six on fears that demand from the auto sector, where the metal is used in diesel catalysts, could take a hit following the Volkswagen emissions scandal.

Gold dropped from its highest in a month on Friday, giving back some of its sharp overnight gains, as the dollar rallied on an assurance from Federal Reserve chair Janet Yellen that the USA central bank would begin raising rates this year. Gold prices were also falling because...

“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...

Wiliams said that although the Federal Open Market Committee (FOMC) had voted to hold rates at last week’s meeting, it was a close call and he expected a rate rise later this year. Both said they expected a hike this year. “As we have outlined, the domestic economy...

After a week of build-up, debate and second-guessing, the US Federal Reserve chose to keep interest rates on hold.