#Monetary Policy Committee (MPC)

[touchaheartnews]

Fidelity Bank outperforms banks, stock market with 507% gain in 5 years

Investors in Fidelity Bank Plc have earned more than 507 per cent in capital gains over the past five years, ranking above all other major return benchmarks at the Nigerian stock market and the entire banking sector. Trading reports at the Nigerian stock market for the five-year period between May 31, 2019 and May 31, 2024 showed that Fidelity Bank outperformed all key indices at the stock…

[vagnocarvalho]

LIBRAS ESTERLINAS 🇬🇧

Bank of England (MPC: 8-1)

Rate maintained - September 2024

[novumtimes]

Bank of England holds rates at 5%

Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. The Bank of England has held interest rates at 5 per cent after inflation remained steady in August, but indicated it may lower borrowing costs again as soon as November. The Monetary Policy Committee’s eight-to-one decision on Thursday came after it cut borrowing costs by a quarter point at its meeting last month. In a signal that another rate reduction is likely as soon as its next meeting in seven weeks’ time, the BoE said it would take a “gradual” approach to loosening policy, assuming there are no material changes in the economy. Sterling rose, briefly hitting its strongest level against the dollar since March 2022, before pulling back but remained up 0.3 per cent on the day at $1.3251. Interest rate sensitive two-year gilt yields rose to 3.94 per cent, up 0.03 percentage points on the day. Some content could not load. Check your internet connection or browser settings. Andrew Bailey, the bank’s governor, said inflationary pressures were easing and that the economy was evolving “broadly as we expected”. “If that continues, we should be able to reduce rates gradually over time,” he said. “But it’s vital that inflation stays low, so we need to be careful not to cut too fast or by too much.”     The BoE decision came a day after the US Federal Reserve cut rates by half a point and a week after the ECB made its second quarter-point reduction of the year. While the BoE cut rates in August, it is treading a wary path towards lower borrowing costs and said on Thursday its decisions were guided by the need to “squeeze” persistent inflationary pressures out of the system. The meeting puts the BoE on a “glide path to a November rate cut,” said Rob Wood, chief UK economist at Pantheon Macroeconomics. “Underlying inflation pressures continue to ease, but the broad data flow suggests little need for urgency,” he added. UK inflation held steady at 2.2 per cent in August — far below its 2022 peak of more than 11 per cent and close to the BoE’s 2 per cent target. But services price inflation has recently edged up. Some content could not load. Check your internet connection or browser settings. The MPC predicted that inflation will edge higher to 2.5 per cent towards the end of the year, while the economy will grow at a subdued 0.3 per cent quarterly pace in the second half. The minutes to Thursday’s meeting said MPC members held a “range of views” over how entrenched domestic inflationary pressures will prove, adding that most believed that further gradual rate reductions will be needed. Recommended The only MPC member to dissent from Thursday’s decision to keep rates unchanged was Swati Dhingra, an external member, who is the most dovish rate-setter and called for an immediate quarter-point reduction to 4.75 per cent. Rate-setters at the BoE meeting made no change to the pace of quantitative tightening — its policy of shrinking its balance sheet. This means that bond holdings will be reduced by £100bn in 2024-25. The BoE is focusing more on alternative economic scenarios following a critical report by former Fed chair Ben Bernanke. Thursday’s minutes referred to three possible future economic cases. In one, inflation would come down as the impact of global shocks such as the pandemic and the Ukraine war faded away. In another, lower growth would be needed to bring inflation down. In a third case, persistent inflation would mean monetary policy would have to remain tighter for longer. Source link via The Novum Times

[riversfunding]

Signs of business confidence

In August, the Bank of England (BoE) lowered interest rates to 5% in the first cut since March 2020, an action which followed a fall in inflation to the 2% target set by The Monetary Policy Committee (MPC). In addition, the UK's economy grew by 0.6% between April and June, making it the second-best performer in the G7.

Read more - https://www.riversfunding.com/news/how-small-business-loans-could-help-businesses-capitalise-on-market-confidence/

[destkelamedia]

CBN Reopens Borrowing Window, Sets New Lending Rate at 31.75%

Nigeria’s Central Bank Lifts Suspension on Bank Borrowing Amid New Measures to Control Liquidity In a significant policy shift, the Central Bank of Nigeria (CBN) has lifted the suspension on bank borrowings from its Standing Lending Facility (SLF), setting a new lending rate at 31.75 percent. This decision follows the 296th meeting of the Monetary Policy Committee (MPC) and marks a pivotal move…

[indiaepost]

New Zealand eases level of monetary policy restraint

New Zealand’s central bank eased the level of monetary policy restraint by reducing the official cash rate (OCR) by 25 basis points to 5.25 per cent on Wednesday due to eased inflation. New Zealand’s annual consumer price inflation is returning to within the Monetary Policy Committee’s (MPC) 1 to 3 per cent target band,  Xinhua news agency reported, citing a statement of the Reserve Bank of New…

[blogmushroomincus]

Bank of Uganda MPC Decision: Inflation Trends & Economic Outlook

On August 7, 2024, the Bank of Uganda’s Monetary Policy Committee (MPC) announced a significant adjustment in the country’s monetary policy, reducing the Central Bank Rate (CBR) by 25 basis points to 10.0%. This decision comes against a backdrop of moderating inflation and a recovering economy, reflecting the complex interplay of domestic and global economic factors. Inflation Trends and…

[sa7abnews]

Bank of England reduces interest rates to 5%, as growth forecasts are upgraded

New Post has been published on https://sa7ab.info/2024/08/06/bank-of-england-reduces-interest-rates-to-5-as-growth-forecasts-are-upgraded/

Bank of England reduces interest rates to 5%, as growth forecasts are upgraded

The Bank of England has this lunchtime reduced interest rates for the first time since the start of the Covid pandemic, dropping its core base rate by 0.25% from 5.25% to 5.0%. Interest rates had previously risen steadily, doing so on 14 separate occasions from 0.1% in October 2021 to 5.25% in the spring of 2023, a level at which they had previously remained for over a year. This lunchtime’s announcement was believed to be in the balance and in the end the Bank’s Monetary Policy Committee (MPC) voted narrowly by 5 votes to 4 for a rate cut.    The Bank’s Governor, Andrew Bailey, cast the deciding vote for an interest rate cut. As part of today’s announcement the Bank of England has also raised its annual growth forecast for the UK economy from 0.5% to 1.25%. Today’s announcement will be welcomed by mortgage holders, with some 560,000 UK households said to be set to refinance a fixed mortgage between now and the end of 2024.  For the 1.2 million UK households who currently have a ‘tracker’ mortgage, today’s announcement will equate to an average saving of just under £400 per year. Reacting to the Bank’s decision, the new Chancellor of the Exchequer, Rachel Reeves commented, “The cut in interest rates will be welcome news, but millions are still facing higher mortgage rates after the disastrous mini-budget”. The former Chancellor, and now Shadow Chancellor, Jeremy Hunt also welcomed today’s announcement.  Suggesting that the new Labour government had inherited an economy that was on ‘the right track’, Mr Hunt said, “In government, we took difficult decisions that cut inflation from 11.1 per cent to the Bank’s target 2.0 per cent, paving the way for lower rates”. With two thirds of sitting Conservative MPs having been defeated in last month’s general election, this apparent change in the trajectory of the UK economy, is likely to lead some to further question Rishi Sunak’s decision to call this year’s electoral contest as early as he did. The Building Societies Association (BSA) has welcomed today’s move stating, “Today’s cut in Bank Rate marks a turning point in what has been a very difficult two and half years”. Speaking on behalf of the BSA, Paul Broadhead, Head of Mortgage and Housing Policy, said, “The news will be welcomed by many homeowners and aspiring first-time homebuyers. Whilst a 0.25% cut in the rate to 5%, will not have a significant impact on the overall cost of mortgage payments, it is likely to boost to consumer confidence and lead to an increase in housing market activity”. The General Secretary of the Trade Union Congress, Paul Nowak also welcomed today’s move, saying, “This rate cut will give relief to millions of families and businesses – and needs to be the first of many”. The extent to which interest rates now embark on a fast downward trajectory does though appear uncertain, with the CBIs deputy chief economist, Alpesh Paleja warning, “At best, there is only mixed evidence that inflation persistence has been defeated. While the labour market is loosening and wage growth slowly easing, the unexpected strength in services inflation remains a red flag” The minutes of the previous MPC meeting had expressed concern that this April’s increase in the National Living Wage was creating cost pressures for some businesses.  Greg’s the bakery chain has already commented that cost pressures were causing it to raise its prices with the chain increasing the price of its sausage roll by 5p earlier this week.   . The post Bank of England reduces interest rates to 5%, as growth forecasts are upgraded .

[lagmennet]

Cardoso, CBN Governor, Predicts Lower Interest Rates - Stay Informed

Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has guaranteed Nigerians and private sector investors that interest rates will soon fall from their current level of 30 percent. Yemi Cardoso stated that the current interest rate was set by the CBN’s Monetary Policy Committee, not him. Cardoso mentioned this while addressing at the Business CEO Forum in Lagos. He stated that the MPC…

[novumtimes]

Impact of US Fed rate cut might be muted in India: CEA Nageswaran | Economy & Policy News

Chief Economic Advisor V Anantha Nageswaran (Photo: PTI) 2 min read Last Updated : Sep 19 2024 | 4:33 PM IST The impact of the US Federal Reserve’s rate cut might be muted in India as much of it was already priced in, Chief Economic Advisor V Anantha Nageswaran said on Thursday. Speaking on the issue, Economic Affairs Secretary Ajay Seth told reporters that the Fed rate cut would not have a significant impact on foreign inflows into India. “It is a positive for the global economy, including the Indian economy. It is a 50 basis point cut from a high level. I don’t see that making any significant impact on inflows. We have to see from where the US interest rates levels are. We have to see how other economies’ markets behave,” Seth said.    The US Federal Open Market Committee on Wednesday voted to cut the federal funds rate target range by 50 basis points to 4.75-5.00 per cent from 5.25-5.50 per cent.  Addressing the Deloitte Government Summit 2024, the CEA said that the Indian stock market is already attracting investor interest and overall the rate cut is positive for emerging markets. Nageswaran added, “Stock markets had moved ahead of the rate cut… It is difficult to predict whether the rate cut per se will be a fillip to the global economy because other things are not constant.”  He was referring to the geopolitical conflicts continuing amid a slowing global economy. “If everything else stays constant, then the rate cut by itself should be a positive because it lowers the dollar cost of capital, increases dollar liquidity in the world,” Nageswaran said.  He said that many countries, including developing countries, will be relieved to see dollar liquidity since they have been affected by the tightening interest rates in the US between 2022 and 2023.  The US central bank had kept interest rates at an over two-decade high for 14 months. The Fed’s announcements come days before the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting scheduled on October 7-9. Replying to whether RBI would start to cut interest rates, Seth said that it was for the MPC to take a decision at apt time. “Their decision is based on what is good for the Indian economy. You should not read too much into the event which happened yesterday,” Seth said.  The RBI has maintained status quo on the rates since February 2023.  First Published: Sep 19 2024 | 4:24 PM IST Source link via The Novum Times

[petnews2day]

Bank Rate Held At 5.25% Despite Inflation Hitting Target – Forbes Advisor UK

New Post has been published on https://petn.ws/rqsB1

Bank Rate Held At 5.25% Despite Inflation Hitting Target – Forbes Advisor UK

20 June: Market Eyes August For Possible Cut To 5% The Bank of England has kept borrowing costs at a 16-year high of 5.25%, the seventh occasion since August last year that it has left the Bank Rate unchanged, writes Andrew Michael. Today’s announcement saw the Bank’s Monetary Policy Committee (MPC) decide by seven votes […]

See full article at https://petn.ws/rqsB1 #PetFinancialNews

[optionperks]

Sensex, Nifty 50 break 3-month gains to end May in red; 5 major triggers to watch out for in June

Swinging between gains and losses, Indian stock market benchmarks, the Sensex and the Nifty 50, eventually ended the month of May with losses, snapping the winning streak of the last three consecutive months. Sensex shed 0.70 per cent, while the Nifty 50 declined 0.33 per cent in May. The BSE Midcap index, on the other hand, bucked the trend and clocked a decent gain of 1.74 per cent. The BSE Smallcap index lost 0.11 per cent in May. The domestic market witnessed strong volatility, with the fear index India VIX surging 91 per cent in May. Volatility may spike further in June as several crucial events will swing the market in the coming month. Here are the five key factors set to influence the Indian stock market in June:

The Lok Sabha Election result All eyes are on the results of the Lok Sabha election 2024, which is expected on June 4. Exit polls will start coming after the final phase of the seven-phase general election on Saturday, June 1. Experts anticipate high volatility in the Indian stock market on Monday and Tuesday, reacting to exit polls and the final outcome.

Buzz about the Budget After the formation of the new government, focus will shift to the new Budget which will most likely be presented in July. The speculations around the Budget will keep the market busy in June.

Geopolitical developments Geopolitical developments will remain critical triggers for market sentiment. If tensions in West Asia escalate further, it may deal a blow to investors' risk appetite. Moreover, tensions in West Asia can push crude oil prices higher, which is negative for the Indian economy and can weigh on market sentiment.

Central bank meetings The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) will meet on June 5-7 to decide on the monetary policy. The US Federal Reserve will announce its policy decision on June 12. Even though neither the US Fed nor the RBI is expected to cut rates, investors' focus will be on the commentary of central bank chiefs regarding the growth and inflation dynamics.

Progress of monsoon The monsoon is expected to remain above normal this year. According to the India Meteorological Department (IMD), southwest monsoon rainfall over the country from June to September is likely to be 106 per cent of the long-period average, with a model error of +/-4 per cent.

[ghanashowbizonline]

News - Bank of Ghana keeps policy rate at 29 percent

Ghana News Live – bringing you all trending daily news as it happens. The Bank of Ghana (BoG) has announced its decision to maintain the policy rate at 29 percent, a move that reflects the central bank’s ongoing efforts to stabilize the economy amid persistent inflationary pressures and external economic uncertainties. This decision, made during the bank’s Monetary Policy Committee (MPC) meeting,…

[rajiasacademy25]

What is RBI's Monetary Policy and Its Impact on the Economy?

Welcome to the blog of Raj Malhotra Academy, the Best HAS Coaching Institute in Chandigarh! Today, let's discuss the Monetary Policy Committee (MPC) meeting and how it affects India's economy. The Reserve Bank of India (RBI) decided to keep its policy rates the same, including the repo rate, SLR, and bank rate. But why did the RBI choose this, and what does it mean for the economy? Let's dive into RBI's monetary policy's details and importance in ensuring economic growth and stability.

RBI's Monetary Policy Decision:

In the last MPC meeting, the RBI decided not to change its policy rates. Even though the economy is growing and more people are investing, the RBI chose to keep things the same. This is because they are worried about inflation, especially because food prices are going up. The RBI keeps an eye on inflation between 2% and 6%. While inflation has decreased, food prices are still high, making it hard for the RBI to balance growth and keep prices stable.

Impact on the Economy:

Keeping the policy rates unchanged affects different parts of the economy. One sector that can benefit is real estate because stable interest rates help it grow more. Also, when the RBI doesn't change its policy, other countries think India's economy is doing well. This makes foreign investors want to invest in India more, which helps the economy grow. The RBI's job is to control inflation and ensure enough money in the economy, which allows it to grow and stay stable.

Challenges Faced by RBI:

The RBI faces the challenging task of managing inflation and boosting growth. Lowering interest rates can help the economy grow, but with inflation staying high, it's tricky. Also, global economic ups and downs make decisions even harder. To handle all this, the RBI needs to be innovative. It must find ways to control inflation while letting the economy grow steadily. Balancing these goals is crucial for a healthy economy.

Future Policy Directions:

Moving forward, the RBI needs to handle the changing economy carefully. They have to make rules that prevent prices from going up too fast while also helping the economy grow. The RBI should be open and transparent about its decisions so everyone understands what's happening. It's also essential for the RBI to learn from what's happening in other countries and use that knowledge to make good choices for India's economy.

Towards the End

The recent decision by the RBI to keep its policy rates unchanged underscores the delicate balancing act faced by central banks in managing inflation and promoting growth. While stability in interest rates benefits sectors like real estate, the broader implications for economic growth and stability remain paramount. As India's economy continues to evolve, policymakers must adapt their strategies to navigate the complexities of the global financial landscape. The RBI plays a vital role in shaping India's economic trajectory by fostering a conducive growth environment while addressing inflationary pressures.

Raj IAS Academy, the best HAS coaching institute in Chandigarh, is committed to providing expert guidance and support to all UPSC aspirants. Our overall coaching approach is designed to meet the unique needs of the HAS exam. With experienced teachers and modern facilities, we ensure students get the best education and preparation possible. Like this, we simplify essential topics for UPSC aspirants, making complex concepts easy to understand and master. With our strong commitment, we help students succeed in their UPSC journey and reach their goals.

[schoenes-thailand]

Kluft zwischen Gouverneur von Bank of Thailand (BoT) und dem Premierminister vergrößert sich - keine Lösung in Sicht

Seit seinem Amtsantritt hat Premierminister Srettha Thavisin seiner Regierung mehrere Herausforderungen gestellt, darunter das Erreichen einer durchschnittlichen Wirtschaftswachstumsrate von mindestens 5 % pro Jahr über einen Zeitraum von fünf Jahren und die Ankurbelung der Wirtschaft durch eine Spende von 10.000 Baht an die Bevölkerung (die digitale). Wallet-Projekt) im Gesamtwert von 5 Billionen Baht. Der Plan der Regierung, eine so große Summe zu verwenden, stellt eine Herausforderung für die Wahrung der wirtschaftlichen Stabilität und der Haushaltsdisziplin dar. Er hat auch die Bank of Thailand (BOT) aufgefordert, die Zinssätze zu senken, was in Kombination mit seinen anderen Maßnahmen in den letzten acht Monaten der Regierungsführung den Eindruck einer Meinungsverschiedenheit zwischen der Regierung und der BOT hervorgerufen hat. Hier sind 5 Ereignisse, die zur Kluft zwischen der Regierung und der BOT geführt haben. - BOTs Bedenken hinsichtlich digitaler Geldbörsenprojekte Sethaput Suthiwartnarueput, der Gouverneur der Bank, hat mehrere Bedenken hinsichtlich des digitalen Geldbörsenprojekts geäußert, insbesondere hinsichtlich der Verteilung des Geldes an 50 Millionen Menschen. Der Standpunkt des BOT ist klar: Die Almosen sollten nur an bestimmte gefährdete Gruppen weitergegeben werden. Am 10. Januar 2024 traf sich der Premierminister mit Sethaput, um die Gesamtwirtschaft, die internationale Wirtschaft, die Zinssätze und die Inflation zu besprechen. Während des Treffens erläuterte der Premierminister die aktuelle Marktsituation sowie die große finanzielle Notlage, in der sich viele Menschen befanden. Er betonte, dass er nicht befugt sei, die Zinssätze zu manipulieren, und dass er verstanden habe, dass BOT unabhängig sein sollte, indem er seine Argumentation erläuterte und Meinungen austauschte, ohne Anweisungen zu erteilen. Nach einer Sitzung des Politikausschusses des Digital Wallet-Projekts unter dem Vorsitz von Srettha am 10. November wurde berichtet, dass Sethaput mehrere Fragen angesprochen hatte, insbesondere in Bezug auf die Gesetzgebung zur Kreditaufnahme. Er stellte fest, dass solche Maßnahmen gegen das Gesetz verstoßen könnten, da die Zuführung von Geldern in das System eine klare Quelle haben müsse. - Srettha trifft Sethaput im Government House Aufgrund der Spannungen zwischen Srettha und Sethaput versuchte der Premierminister, ihre Differenzen beizulegen, indem er Sethaput zu einem Treffen im Regierungsgebäude einlud. Sethaput seinerseits sagte, dass die BOT den Prozess zur Lösung der Schuldenprobleme der Bevölkerung sowohl kurz- als auch langfristig beschleunige. Der Premierminister teilte den Medien außerdem mit, dass er Sethaput gesagt habe, dass sie sich jede Woche zum Kaffee treffen könnten oder er bei Bedarf Sethaputs Büro besuchen könne. Seit Januar gab es jedoch keine Anzeichen für Kaffeetreffen oder Diskussionen und keine gemeinsamen Fotos des Premierministers und des Gouverneurs von BOT. - Der Premierminister hat die BOT mehrfach aufgefordert, die Zinssätze zu senken Der Premierminister hat in den Medien mehrfach darüber gesprochen, den Monetary Policy Committee (MPC), einen der vom BOT beaufsichtigten Ausschuss, aufzufordern, eine Senkung des Leitzinssatzes in Betracht zu ziehen. Solche Signale des Premierministers erfolgen häufig vor MPC-Sitzungen. Am 15. März erklärte der Premierminister: „Viele haben möglicherweise nicht so viele Probleme wie Beamte, die für den Fortschritt des Landes unerlässlich sind. Dennoch gibt es immer noch viele Beamte, die mit Schulden zu kämpfen haben, und egal wie viel sie arbeiten, Sie können die Zinsen nicht decken. Auch wenn die BOT die Zinsen nicht senkt, danke ich den Agenturen aufrichtig für ihre Unterstützung, und ich glaube, dass die Beamten in diesen Agenturen dies auch zu schätzen wissen. Gegen Ende Februar gab Srettha aufeinanderfolgende Interviews zur Senkung der Zinssätze der BOT und forderte eine Sondersitzung des MPC, um über eine Senkung der Zinssätze nachzudenken. „Die Regierung fordert, dass die BOT die Zinssätze logischerweise senkt, und möchte, dass Sethaput Suthiwartnarueput, der Gouverneur der BOT, die Not der Menschen stärker berücksichtigt als die drei von ihm angesprochenen Themen“, erklärte er. In einer letzten MPC-Sitzung am 10. April beschloss das MPC, den Leitzins bei 2,5 % zu belassen. Der Premierminister gab den Medien ein Interview und sagte: „Ich denke, die Haltung zu den Zinssätzen ist klar. Er ist unabhängig. Ich möchte ihn jedoch daran erinnern, dass Unabhängigkeit nicht Unabhängigkeit von den Nöten der Menschen bedeutet. Denken Sie an die Nöte der Menschen. Heute gibt es keinen Druck, aber das Ergebnis wird zeigen, ob gekürzt werden soll oder nicht.“ Am 3. Mai erklärte Srettha auf der Bühne der thailändischen Partei: „Wir haben mit dem Gouverneur der BOT gesprochen, um die Zinssätze zu senken, obwohl die Bank unabhängig ist. Aber es bedeutet keine Unabhängigkeit von der Not der Menschen. Wir haben höflich gesprochen. Wenn.“ „Wenn Sie es tun, ist es gut.“ - BOT hat sich mehreren Regierungsmaßnahmen widersetzt. Die Prüfung der Haushaltspolitik der Regierung durch das Kabinett erfordert die Stellungnahme verschiedener Behörden. Das BOT ist eine solche Agentur, die das Sekretariat des Kabinetts konsultieren muss. Es gibt mehrere Richtlinien, gegen die die BOT Einwände erhoben hat, beispielsweise das Programm zur Bereitstellung von 1.000 Baht pro Rai für Reisbauern, insgesamt 5,6 Billionen Baht, und das Digital Wallet-Projekt - Es stellen sich politische Fragen zur Unabhängigkeit des BOT Zuletzt schloss sich Paetongtarn Shinawatra, die Vorsitzende der Pheu Thai Partei, einer wichtigen politischen Partei der Koalition, dem Kampf an. Sie erklärte ausdrücklich, dass die Unabhängigkeit der BOT die Bemühungen zur Lösung von Problemen und zur Förderung der Wirtschaft des Landes behindere. Sie fügte hinzu, dass die Gesetzgebung dem BOT Unabhängigkeit von der Regierung gewährt. Dieses Problem stellt eine Herausforderung und ein Hindernis bei der Bewältigung wirtschaftlicher Probleme dar, da sich die Regierung in der Vergangenheit ausschließlich auf die Finanzpolitik verlassen hat, um die Wirtschaft anzukurbeln, was zu erheblichen Haushaltsdefiziten geführt hat, die jedes Jahr zunahmen. Dies hat eine breite Diskussion zu diesem Thema ausgelöst. / The Nation Read the full article