The Bank of England has maintained its interest rate at 5%, contrasting with the US Federal Reserve’s rate cut to 4.8%. Inflation concerns in the UK, particularly in the services sector, have driven this cautious approach.
US Fed slashes interest rates: With inflation rates dropping significantly since peaking in summer 2022, the Fed has lowered its benchmark policy rate to between 4.75% and 5%. Although the Fed aims to remain politically neutral, this decision is likely to influence the upcoming U.S. Presidential
The rate cut ends a 14-month period where rates were held steady. This duration is longer than three of the last six Fed "hold" periods but falls short of the 15-month pause before the 2007-2009 financial crisis.
Indian gold futures also hit a record high on Monday and squeezed demand in the world's second-biggest consumer of the metal, said dealers. Gold prices across the world have been boosted due to growing rate-cut expectations, central bank purchases and geopolitical tensions.
The projections shared by the US Federal Reserve indicated the continuation of strong economic growth despite inflation remaining 'inflated'. This step caused global stocks to rally on Thursday, while the Indian rupee showed gains of 14 paise in the morning.
The losses came amid a backdrop of mixed global cues, with investors keeping a close eye on the upcoming US Federal Reserve policy outcome.
Federal Reserve Interest Rate Hike Decision: Federal Reserve chair Jerome Powell will announce the decision of a two-day policy meeting on Wednesday.
Prices rose sharply in 2021 for cars, gas, food and furniture as part of a rapid recovery from the pandemic recession. Vast infusions of government aid and ultra-low interest rates helped spur demand for goods, while vaccinations gave people confidence to dine out and travel.
The US economy is expected to expand at 5.9 per cent this year, lower than 7 per cent estimated in June, according to the median forecast of the Fed's latest summary of economic projections released also on Wednesday.
"The path of the economy continues to depend on course of the virus. Progress on vaccinations will likely continue to reduce the effects of the public health crisis on the economy, but risks to the economic outlook remain," the Fed said in a statement after concluding a two-day meeting, Xinhua reported.
US President Donald Trump has criticised the Federal Reserve's monetary policies, saying the central bank's hesitation in lowering the interest rates capped gains in the US economy and stock market
After a choppy session, the 30-share index settled 83.88 points or 0.22 per cent higher at 37,481.12. The broader NSE Nifty ended 32.60 points or 0.29 per cent up at 11,118.00.
Economists are roughly divided on whether they think Fed's policymakers will raise rates three times this year, as in 2017, or four times. The pivotal factor will likely be how inflation performs.
The US Federal Reserve has imposed a penalty of $41 million on Deutsche Bank for failure to maintain controls against money laundering in its U.S. operations.
The Federal Reserve said the economy’s continued growth might convince it to raise its benchmark interest rate "fairly soon" due to the ambitious policies proposed by President Donald Trump that may have unforeseen effects, the media reported.
In response to a solid U.S. economy and expectations of higher inflation, The Federal Reserve has raised a key interest rate by 25 basis points to between 0.50 per cent and 0.75 per cent on
New Delhi: India on Thursday said the economy was resilient and well insulated to cope with any impact of the hike in US interest rates even as the key equity market indices in the country
Washington: In a landmark move signalling that the US has finally moved beyond the 2007-2008 financial crisis, America's central bank, the US Federal Reserve, on Wednesday announced its first interest rate increase in more than
New York: The US stocks suffered big losses on Friday as the Federal Reserve's decision to leave interest rates unchanged triggered increasing concerns about a slowdown in global growth.The Dow Jones Industrial Average dropped 289.95
Washington: The Federal Reserve, America's central bank, has decided not to raise interest rates in June, but signalled that the long-awaited rate hike could come in September as the economic activity picks up."The committee expects
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