Tagged: interest rates

US Federal Reserve to Cut Rates this Week. How Much?

Later this week, the US Federal Reserve, Federal Open Market Committee (FOMC), will reveal how much they will cut benchmark interest rates. This is the first time the Fed will cut rates since 2020. The debate on the rate cut has shifted to whether or… Read More

Ivey Business School’s Dr. Stephen Foerster Explains Winners, Losers of Fed Rate Cuts

As the U.S. Federal Reserve gathers next week, stakeholders are analyzing the potential effect of an interest rate cut. Whatever the board decides, Ivey Business School Professor Dr. Stephen R. Foerster, CFA, said there will be winners and losers. Foerster said lower ones tend to… Read More

European Central Bank Cuts Rates by 25 Basis Points

The European Central Bank (ECB) has decided to cut benchmark rates by 25 basis points. The ECB reaffirmed its expectations on inflation stating headline that inflation will average 2.5% in 2024, 2.2% in 2025 and 1.9% in 2026. Core inflation is anticipated  to decline from 2.9%… Read More

Commentary: 50-BP Rate Cut Needed to Avert Trouble

The United States Federal Reserve must go big with a supersized 50-basis-point interest rate cut in September to get ahead of a looming economic storm, advises deVere Group founder and CEO Nigel Green. The warning comes as consumer prices in the US inched up modestly… Read More

Bank of England Cuts Rates, US Federal Reserve on Deck

The Bank of England, Monetary Policy Committee (MPC), has voted 5 to 4 to cut the benchmark Bank Rate by 0.25% to 5%. The disennters preferred to hold rates steady for now. The decision to cut rates follows the decision by the US Federal Reserve… Read More

US Federal Reserve Decision: No Rate Cut, Yet

The US Federal Reserve has held rates steady, holding off on rate cuts that many anticipate this coming fall. While Fed Chairman Jerome Powell said they had made much progress on their goal of inflation of 2% and full employment, the Federal Open Market Committee… Read More

UK Economy Reportedly Exhibiting Tentative Signs of Renewed Momentum with Growth of 0.5% Expected in 2024

Following a technical recession in the second half of 2023, the UK economy has shown tentative signs of renewed momentum, “with growth of 0.5% expected this year, and 0.9% in 2025,” according to the latest KPMG Global Economic Outlook. The report finds a number of… Read More

Bank Clients in Canada Still Feel Economic Pressure, Look to Banking Service Providers for Guidance, Study Finds

Although interest rates and inflation have started to trend downward, many bank customers in Canada are still feeling the economic squeeze and the majority of them express interest in receiving financial advice from their bank, according to the J.D. Power 2024 Canada Retail Banking Advice… Read More

Growing Consensus Among Portfolio Managers and Central Bankers that Interest Rates Will Stay Higher for Longer – Report

BlackRock (Nasdaq: BLK) recently noted that there’s broad agreement among portfolio managers that a concentrated group of AI winners “will drive returns over a short-term tactical horizon.” BlackRock also mentioned in a recent market update that US stocks reached record highs and bond yields fell… Read More

Concerns About Inflation, Interest Rates Increase Even as US Consumers Stay Optimistic About Finances – Report

TransUnion’s (NYSE: TRU) Q2 2024 Consumer Pulse study found that consumer concerns about inflation and interest rates reached their highest levels in two years. Despite these concerns, they come “as 55% of Americans remain optimistic about their household finances over the next year – the… Read More

European Central Bank Cuts Rates by 25 BPS

While stating the 2% target rate of inflation is still in place, the European Central Bank (ECB) has cut benchmark rates by 25 basis points. The ECB said the European economy is starting to grow, and they anticipate the 2% target will be hit in… Read More

European Central Bank Expected to Cut Benchmark Rates

The European Central Bank (ECB) is expected to cut interest rates tomorrow (June 6) as growth flags across Europe. Earlier today, the Bank of Canada reduced its target for the overnight rate to 4¾%, with the Bank Rate at 5%, noting that the global economy… Read More

Lower Inflation, Expectations of Interest-Rate Cuts in Global Financial Markets Reduced Near-Term Risks – Riksbank Report

Lower inflation and expectations of interest-rate cuts on global financial markets have helped loosen financial conditions, which has reduced near-term risks, according to an update from Sweden’s Riksbank. However, Riksbank points out that there “is considerable uncertainty, and if policy rates remain high for a… Read More

US Federal Reserve Holds Interest Rates Steady, Powell Says He Expects Inflation to Decline

The US Federal Reserve’s Federal Open Market Committee (FOMC) decided to hold rates steady today. While no one was expecting a move in either direction, markets were keenly watching the FOMC statement to determine the Fed’s thinking regarding future rate adjustments. The target range for the… Read More

UK Mortgage Approvals Rising Shows Housing Market Recovery Is Moving in the Right Direction, Industry Professional Says

Karim Haji, Global and UK Head of Financial Services at KPMG, comments on the recent Money and Credit data from the Bank of England. Karim noted that mortgage approvals rising for the fifth month in a row shows the housing market recovery “is still moving… Read More

US Retail Investors Are Adjusting Investment Portfolios in Anticipation of Fed Slashing Interest Rates – Report

As speculation about rate cuts intensifies, investors are preparing their portfolios, according to an update from eToro. According to data from the Retail Investor Beat from trading and investment platform eToro, 55% of US retail investors are “adjusting their investment portfolio in anticipation of the… Read More

Fed Holds Interest Rates, Anticipates Rate Cuts Later in the Year

The US Federal Reserve announced that it has decided to hold benchmark rates steady at a rate of 5.25% to 5.5% today, as the Wall anticipated. The statement issued by the Federal Open Market Committee (FOMC) indicated that job gains have moderated since early last… Read More

Estonia’s Consumer Loans Firm BB Finance Launches on Mintos Platform

Mintos is welcoming BB Finance OÜ, a consumer loans company operating in Estonia, offering new investment opportunities on Mintos “with interest rates of up to 12.5% per annum.” BB Finance was founded by CEO Martin Kolu and management board member Urmo Kokmann in 2006. The… Read More

Central Banks Likely to Keep Interest Rates Higher for Longer in Economies with Elevated Core Inflation – IMF Analysis

Central banks will likely keep interest rates higher for longer in economies with persistently elevated core inflation (excluding food and energy prices), according to an update shared by the International Monetary Fund (IMF). The IMF noted that the high-interest-rate environment, which recently “triggered banking sector… Read More

UK FCA Criticizes Interest Earned on Cash Balances: “They Need to Make Changes” (Or Else)

The UK Financial Conduct Authority (FCA) has been pounded the drums for some time now on the interest earned by consumers on cash balances held on various platforms. While interest rates have risen dramatically in the past couple of years, many financial institutions have been… Read More

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