Interest rate

2024 - 8 - 1

Interest Rates: Are We About to Ride the Rate-Cutting Rollercoaster?

Bank of Japan - Economic Policy - Federal Reserve - Global Economy - Inflation - Interest Rates - RBA

The Federal Reserve hints at potential interest rate cuts, while the Bank of Japan surprises with hikes. Buckle up, folks!

In June 2024, the Euro area witnessed a decline in the composite cost-of-borrowing indicator, indicating a welcome relief for borrowers. This trend suggests that banks are becoming more lenient with their interest rates on loans to corporations, a move that may encourage investment and boost the economy. Meanwhile, across the ocean, the Federal Reserve is sitting at a 23-year high with interest rates, but discussions are heating up about potential cuts as the economy stabilizes post-pandemic. Fed Chair Jerome Powell is expected to drop hints during upcoming meetings, much to the anticipation of investors.

Interestingly, while the Federal Reserve contemplates easing rates, the Bank of Japan is taking a different approach. They recently raised their short-term interest rate to 0.25%, marking a significant shift in monetary policy aimed at curbing the Japanese yen's ongoing slide. Governor Kazuo Ueda emphasized that this decision stems from a robust economic foundation bolstered by gradual price rises, indicating a shift in Japan's long-standing low-interest rate policy. With these developments, investors are left pondering how this will affect global markets and whether Australia's financial landscape will feel the ripple effect.

As the Federal Reserve gears up for its FOMC meeting, investors are bracing for potential hints of multiple rate cuts that could redefine the upcoming economic landscape. The anticipated adjustments could signal the first reduction in interest rates in four years — a monumental change as the world transitions into a new financial era post-COVID. It’s quite the nail-biter, with markets ready to react as Powell’s remarks could shift sentiments overnight.

Meanwhile, in the background, central bank policies are more than just numbers; they reflect global economic health. Did you know that the last time we saw a government cut interest rates substantially was right after the GFC (Global Financial Crisis)? And adding a twist to the tale, with each interest rate adjustment, the dynamics of foreign exchange markets dance accordingly — that's probably more thrilling than your latest Netflix binge! Buckle up as we navigate these financial seesaws!

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Image courtesy of "European Central Bank"

Euro area bank interest rate statistics: June 2024 (European Central Bank)

The composite cost-of-borrowing indicator, which combines interest rates on all loans to corporations, decreased in June 2024. The interest rate on new loans of ...

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Image courtesy of "USA TODAY"

Are interest rate cuts coming soon? Live updates on the Fed's ... (USA TODAY)

The Federal Reserve will make an interest-rate announcement at 2 p.m. Eastern Time: probably no change to the benchmark rate. Fed chair Jerome Powell will hold ...

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Image courtesy of "ABC News"

Fed expected to cut interest rates soon, but not this week (ABC News)

Interest rates stand at a 23-year high. ByMax Zahn. July 31, 2024, 3:22 AM. 1:20. Federal Reserve to announce interest rate decision.

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Image courtesy of "Financial Times"

Bank of Japan raises interest rates to 0.25% (Financial Times)

Japanese central bank plans to halve monthly bond purchases as it tightens monetary policy.

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Image courtesy of "Reuters"

Investors react to BOJ's interest rate hike (Reuters)

The Bank of Japan said on Wednesday it is raising its short-term interest rate to 0.25% and will gradually reduce the amount of bonds it is buying under its ...

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Image courtesy of "The Associated Press"

Bank of Japan raises its key interest rate, aiming to curb yen's slide ... (The Associated Press)

Bank of Japan Gov. Kazuo Ueda told reporters the action came because the foundation of the Japanese economy was relatively solid, with gradual price rises ...

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Image courtesy of "FOX 10 News Phoenix"

Federal Reserve meeting and could announce September interest ... (FOX 10 News Phoenix)

Federal Reserve officials on Wednesday may indicate that a potential interest rate cut is coming soon, which would be the first cut to their key interest ...

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Image courtesy of "The Wall Street Journal"

Fed Meeting Today: Nasdaq Futures Rally Ahead of Interest-Rate ... (The Wall Street Journal)

The Federal Reserve is due to release its interest-rate decision today at 2 p.m. ET. Here's what to know: The Fed is widely expected to hold rates steady, ...

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Image courtesy of "The Wall Street Journal"

Bank of Japan Raises Interest Rates, Driving Up Yen (The Wall Street Journal)

In rare comment, Gov. Ueda says weak currency is reason to tighten monetary policy.

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Image courtesy of "FXStreet"

Fed Preview: Will Powell hint at multiple interest rate cuts before the ... (FXStreet)

The US Federal Reserve (Fed) will announce monetary policy decisions following the July 30 - 31 policy meeting on Wednesday.

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Image courtesy of "The New York Times"

Bank of Japan Raises Interest Rates for Second Time Since 2007 (The New York Times)

The Japanese central bank increased its target policy rate to 0.25 percent, up from a range of zero to 0.1 percent. The rate was last bumped up in March, when ...

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Image courtesy of "The Wall Street Journal"

Fed Meeting Today: Investors Await FOMC Interest-Rate Decision ... (The Wall Street Journal)

The Federal Reserve is expected to keep interest rates steady, but clues to future rate cuts are likely to come today at 2 p.m. Fed Chair Jerome Powell is ...

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Image courtesy of "NBC News"

Fed on track for first post-pandemic rate cut amid growing signs of ... (NBC News)

Federal Reserve officials have begun contemplating cutting interest rates for the first time in the post-pandemic period as their focus shifts from surging ...

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Image courtesy of "ConchoValleyHomepage.com"

First interest rate cut in 4 years likely on the horizon as the Federal Reserve meets (ConchoValleyHomepage.com)

WASHINGTON (AP) — With the end of their two-year fight against inflation in sight, Federal Reserve officials are likely Wednesday to set the stage for the first cut to their key interest rate in four years, a major shift in policy that could eventually ...

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Image courtesy of "CNN"

The Fed keeps interest rates at current levels, but signals a cut is ... (CNN)

The Federal Reserve said Wednesday it will continue to hold its benchmark interest rate at current levels, marking a full year since the cost of borrowing ...

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Image courtesy of "Financial Times"

Federal Reserve holds US interest rates steady but signals it is ... (Financial Times)

Still, the FOMC maintained that it needed to gain “greater confidence that inflation is moving sustainably toward 2 per cent” before lowering borrowing costs, ...

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Image courtesy of "NPR"

The Federal Reserve is getting closer to cutting interest rates (NPR)

The Fed kept interest rates unchanged at the highest in more than two decades. Investors are betting it will start to lower rates at its next meeting in ...

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Image courtesy of "PBS NewsHour"

WATCH: Fed Chair Powell holds news briefing as first interest rate ... (PBS NewsHour)

At a news conference Wednesday, Fed Chair Jerome Powell said that if inflation continued to cool, "a rate cut could be on the table in the September meeting ...

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Image courtesy of "Forbes"

Fed Holds Interest Rates At 23-Year High—Hints Inflation Improving ... (Forbes)

The Federal Reserve announced Wednesday it will keep interest rates the same, as expected, but gave slight indications economic data should soon support a ...

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Image courtesy of "The Associated Press"

First interest rate cut in 4 years likely as the Federal Reserve meets (The Associated Press)

A rate cut by the Fed is unlikely to have much immediate impact because it is largely expected by financial markets. Yet over time, lower Fed rates should ...

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Image courtesy of "The Guardian"

Fed will hold interest rates steady but officials hint rates could be cut ... (The Guardian)

Chair Jay Powell says central bank 'getting closer to the point' of possible rate cut – 'but we're not quite there yet'

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Image courtesy of "Reuters"

Bank of Japan lifts rates as Fed inches towards cut (Reuters)

The Bank of Japan raised interest rates to levels unseen in 15 years and unveiled a detailed plan to slow its massive bond buying, taking another step ...

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Image courtesy of "BBC News"

Fed hints at possible September interest rate cut (BBC News)

The US central bank is moving closer to lowering borrowing costs for the first time in more than four years, as price increases ease and concerns about the ...

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Image courtesy of "Forbes"

With Interest Rate Cuts Still On Hold, Should Small Businesses ... (Forbes)

Waiting until September for lower interest rates could reduce your cost of capital, but the urgency of your business's financial needs might justify ...

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Image courtesy of "CBS News"

The Fed's keeping interest rates high. Here's how to take advantage ... (CBS News)

A Federal Reserve interest rate cut appears likely for September. Here are three things savers should do before.

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Image courtesy of "Forbes"

The Fed's Interest Rate Meeting Is Optimism Mixed With Uncertainty (Forbes)

Many people watching the economy want absolute promises. The Fed isn't ready to accommodate them, and a new normal may be something people don't like.

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Image courtesy of "CBS News"

The Fed holds interest rates steady. Here's when a rate cut could ... (CBS News)

The Federal Reserve is leaving its benchmark interest rate unchanged as investors look for signals that a cut is imminent.

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Image courtesy of "Marketplace.org"

Interest rate moves aren't the only tool in the Federal Reserve's kit ... (Marketplace.org)

For about two years now, the Federal Reserve has tried to cool inflation by setting interest rates high and keeping them there. But while the federal funds ...

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Image courtesy of "The Guardian"

Bank of England braced for knife-edge interest rate decision (The Guardian)

After a sharp fall in inflation this year, Threadneedle Street is poised for a first reduction in borrowing costs since ratcheting up interest rates from a ...

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Image courtesy of "BBC News"

UK interest rate decision on a knife-edge (BBC News)

The Bank of England will meet later to decide whether or not to cut interest rates.

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Image courtesy of "InDaily"

'No major alarm bells' for interest rates after inflation rise - InDaily (InDaily)

Mortgage holders are tipped to dodge more interest rate pain with economists predicting the Reserve Bank is unlikely to raise rates next week following the ...

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Image courtesy of "Market Index"

Forget RBA hikes! Market now pricing 3 interest rate cuts by ... (Market Index)

The June Consumer Price Inflation (CPI) data released on Wednesday was better than expected, easing concerns the RBA would hike its official cash rate next ...

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Image courtesy of "The Australian Financial Review"

Interest rates: Looming US rate cut strengthens case for RBA to follow (The Australian Financial Review)

Markets are fully priced for Jerome Powell's September easing, but economists do not share the same enthusiasm that the Reserve Bank may not be far behind.

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Image courtesy of "The Australian Financial Review"

RBA interest rates: the latest inflation numbers have changed the ... (The Australian Financial Review)

Economists have joined traders in dramatically revising their interest rate bets after the RBA's preferred measure of price pressures eased to 3.9 per cent ...

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Image courtesy of "ABC News"

Bank of England lowers its main interest rate by 0.25%, to 5%, its ... (ABC News)

The Bank of England is cutting interest rates for the first time since the onset of the COVID-19 pandemic in early 2020.

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