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Interest Rates

Bank of Canada Cuts Rates, Signals More Gradual Approach

The Bank of Canada (BOC) slashed its key policy rate by 50 basis points to 3.25% on Wednesday, aiming to address slower economic growth, reports Reuters. However, Governor Tiff Macklem indicated that future rate cuts would be more gradual, emphasizing that he does not anticipate a recession. Canada'

Bond Traders Take Cautious Stance Ahead of Key Inflation Data

Bond market traders are adopting a more neutral stance ahead of Wednesday's release of US consumer price index (CPI) data, a crucial factor in shaping expectations for future Federal Reserve interest rate cuts, reports Bloomberg. This shift follows a three-week rally in US government debt. JPMorgan Chase &

Australia's Slowing GDP Growth Pushes Rate Cut Expectations Forward

Australia's economy grew at its slowest annual pace since the pandemic in the third quarter, disappointing expectations for a rebound and prompting a significant shift in market forecasts for interest rate cuts, reports Reuters. The Australian Bureau of Statistics (ABS) revealed on Wednesday that real gross domestic product

Fed Uncertain on Extent of Future Rate Cuts: Schmid

Federal Reserve interest rate cuts are a sign of growing confidence that inflation is heading towards the central bank’s 2% target, but it remains unclear how far rates can fall, Kansas City Fed President Jeffrey Schmid said on Tuesday in his remarks prepared for delivery to the Omaha Chamber

BOJ Governor Sees Increased Likelihood of Wage-Driven Inflation

Bank of Japan (BOJ) Governor Kazuo Ueda expressed optimism on Monday about Japan's progress toward achieving sustained inflation driven by rising wages, signaling that conditions for future interest rate hikes are gradually improving, as reported by Reuters. In a speech to business leaders in Nagoya, Ueda stated, "

Global Stocks Tumble as Fed Signals Slower Rate Cuts

Global stock markets experienced their most significant weekly decline in two months, while US Treasury yields hit a five-and-a-half-month high on Friday, as economic data and statements from Federal Reserve officials indicated a less aggressive approach to interest rate cuts, reports Reuters. This shift in expectations followed comments from Fed

US Disinflation Stalls, Highlighting Tough Road Ahead

US inflation likely remained stagnant in October, highlighting the uneven pace of easing price pressures as the Federal Reserve aims to return inflation to its target, reports Bloomberg. The core consumer price index (CPI), which excludes food and energy, is projected to have risen at the same pace on both

Fed Cuts Rates But Trump's Re-Election Casts Shadow Over Future Policy

The Federal Reserve on Thursday lowered interest rates by a quarter percentage point, marking the second consecutive rate cut as the central bank continues to support the US economy. However, the re-election of Donald Trump, known for his criticism of the Fed and his potential to influence monetary policy, has

Japan Intervened Twice in Third Quarter to Prop Up Yen

The Japanese government intervened in the foreign exchange market twice during the third quarter, spending a combined ¥5.54 trillion ($36.4 billion) to support the yen, reports Bloomberg. The interventions, carried out on July 11 and 12, were aimed at stemming the yen's slide against the dollar,

Bank of England Cuts Rates, But Sees Higher Inflation After Budget

The Bank of England (BoE) cut interest rates on Thursday for only the second time since 2020, but signaled that future reductions would be gradual, citing the impact of the new government's first budget, reports Reuters. The Monetary Policy Committee voted 8-1 to lower rates to 4.75%