Interest Rates: Latest News and Analysis

Stay up to date with all the latest news on interest rates.

Delayed Fed Rate Cuts Raise Credit Risks and Spillover Concerns, S&P Global Warns

S&P Global has pushed back its forecast for the first Federal Reserve rate cut to December 2024, citing persistent inflation and unexpectedly strong economic data. This delay in easing monetary policy raises concerns about elevated credit risks in the US and potential spillover effects on other economies, particularly
Delayed Fed Rate Cuts Raise Credit Risks and Spillover Concerns, S&P Global Warns

US Consumer Borrowing Growth Slows Amidst High Interest Rates

The pace of consumer borrowing in the United States has slowed dramatically after a period of rapid growth in the wake of the pandemic, according to a report by Moody's Analytics published last week. Several factors are contributing to this trend, including high interest rates, tightening lending standards,
US Consumer Borrowing Growth Slows Amidst High Interest Rates

Jobs Report Fuels Market Optimism: UBS

The weaker-than-expected April jobs report has sparked optimism for a soft landing in the US economy, prompting UBS to reiterate its positive outlook for quality bonds and quality stocks. Friday's report showed a smaller-than-anticipated increase in employment growth, alongside moderating wage growth and a slight uptick in the

Fitch Warns of Elevated Credit Risks as "No-Landing" Scenario Gains Traction

Fitch Ratings has issued a warning about increased credit risks in the US market as the likelihood of a "no-landing" scenario, where economic growth and interest rates remain largely unchanged, gains traction. This shift in expectations is driven by persistent inflation, which has cast doubt on the timing

S&P Global Pushes Back Fed Rate Cut Expectations

S&P Global has revised its forecast for the Federal Reserve's interest rate path, delaying the anticipated timing of the first rate cut to December 2024. This shift in expectations, driven by persistent inflation exceeding the Fed's target, could have significant spillover effects on global
S&P Global Pushes Back Fed Rate Cut Expectations

Asian Central Banks Face Currency Weakness as US Dollar Strengthens

Central banks across Asia are grappling with the challenge of weakening currencies as the US dollar continues to strengthen, complicating their path towards easing monetary policy. The resilience of the US economy and expectations for delayed Federal Reserve rate cuts have fueled the dollar's rise, putting pressure on
Asian Central Banks Face Currency Weakness as US Dollar Strengthens

Treasury Signals Stable Debt Issuance, Calming Market Jitters

The US Department of the Treasury announced plans to raise approximately $17.2 billion through Treasury securities auctions next week, indicating a stabilization in borrowing needs after several quarters of increases. This news brought some relief to Treasury investors who have been closely monitoring the government's debt issuance
Treasury Signals Stable Debt Issuance, Calming Market Jitters

BOJ Data Hints at Possible Yen-Buying Intervention as Currency Plunges: Nikkei Asia

Data released by the Bank of Japan (BOJ) on Tuesday suggests that the Japanese government may have intervened in the currency market to support the plummeting yen, Nikkei Asia reports. The yen saw a dramatic turnaround against the US dollar on Monday after falling close to 12% since the beginning

Corporate Credit Spreads Remain Tight

Corporate credit spreads widened slightly during the last weekly period, but remained tight overall. This indicates that market participants remain confident in the creditworthiness of borrowers and view the overall economy favorably, according to a report by Moody's Analytics. Moody's Ratings long-term average corporate bond spread
Corporate Credit Spreads Remain Tight

Euro Zone Debt-to-GDP Ratio Declines, but Concerns Remain

The aggregate debt-to-GDP ratio in the Eurozone improved in 2023, declining to 88.6% from 90.8% the previous year, per data released by Eurostat. This marks a step towards pre-pandemic levels, when the ratio stood at 84% in 2019. However, the ratio remains significantly higher than its historical norm