Latest news with #Inflation
Bloomberg
3 hours ago
- Business
- Bloomberg
ECB's Wage Tracker Signals Cooling Pay Pressures Into Next Year
Wage growth in the euro zone is set to slow sharply into the beginning of next year, adding to evidence that the European Central Bank has brought inflation back under control. The ECB's wage tracker, published Wednesday, predicts salaries will rise by an annual 1.7% in the first quarter of 2026. That's well below a peak of 5.2% recorded at the end of 2024.
Bloomberg
a day ago
- Business
- Bloomberg
ECB Says Consumers' Inflation Expectations Eased in June
Inflation expectations of euro-area consumers eased in June, the European Central Bank said. Prices were seen rising 2.6% over the next 12 months, down from 2.8% in May, according to a monthly survey released Tuesday. That's the level recorded at the start of the year — before threats of a full-blown trade war fueled concerns that inflation would rebound. Gauges for three years and five years ahead remained unchanged at 2.4% and 2.1%.
Zawya
2 days ago
- Business
- Zawya
Moody's lifts Turkey's rating to 'Ba3' on improving policy, easing inflation
Credit ratings agency Moody's on Friday upgraded Turkey's rating to "Ba3" from "B1," citing improving monetary policy credibility, easing inflation and reduced economic imbalances. The outlook was revised to stable from positive, reflecting a balance between ongoing policy gains and lingering political and external risks. The lift in ratings comes a day after Turkey's central bank cut its benchmark interest rate by a larger-than-expected 300 basis points to 43%, resuming an easing cycle that had been disrupted earlier this year by political turmoil. Market turbulence in March, triggered by the detention of Istanbul Mayor Ekrem Imamoglu, President Tayyip Erdogan's main political rival, had prompted an emergency rate hike and drained foreign currency reserves. "The upgrade reflects the strengthening track record of effective policymaking, more specifically in the central bank's adherence to monetary policy that durably eases inflationary pressures," Moody's said in a statement. Since Erdogan's re-election in 2023, Turkish authorities have shifted back to orthodox economic policies, sharply raising interest rates and curbing credit growth to rein in inflation and stabilize the lira. Inflation slowed to 35% in June 2025, down from 72% a year earlier, according to official data. Finance Minister Mehmet Simsek said in May that the country's economic transformation was "on track" and that Turkey was prepared to live with slower growth if it meant long-term stability. "Growth is slower but we can live with that," he said at the annual meeting of the European Bank for Reconstruction and Development. The Ba3 rating remains below investment grade but signals improved creditworthiness. Fitch on Friday affirmed its ratings on Turkey at 'BB-' with a stable outlook.
Khaleej Times
2 days ago
- Automotive
- Khaleej Times
UAE petrol prices for August: Why fuel rates likely to remain stable
Petrol prices in the UAE are expected to remain stable or witness only a modest change in August. The average closing price of Brent crude in July was approximately $68.80 per barrel, slightly lower than June's average of $69.87. In the UAE, petrol prices in July were set at Dh2.70 per litre for Super 98, Dh2.58 for Special 95, and Dh2.51 for E-Plus 91. As fuel prices play a crucial role in influencing inflation, stable petrol rates help keep transportation costs and the prices of other goods under control. The UAE continues to rank among the 25 countries with the lowest petrol prices globally, with an average of Dh2.58 per litre. Inflation in the UAE stood at 1.4 per cent in the first quarter of 2025, largely due to declining energy prices. The Central Bank has revised its inflation forecast for 2025 slightly downward, from 2 per cent to 1.9 per cent. This revision is primarily attributed to the continued decrease in transportation costs. The forecast for 2026 has also been adjusted to 1.9 per cent, down from the earlier estimate of 2.1 per cent. Additionally, easing prices of key non-energy commodities are expected to support a contained inflation outlook. Inflation in 2026 is projected to remain steady at 1.9 per cent, reflecting a downward revision of 0.2 percentage points. In July, petrol prices were influenced primarily by concerns over global trade tariffs. However, crude oil futures rebounded last week on optimism surrounding progress in US trade negotiations. 'The US-Japan agreement, which reduces tariffs on automobile imports while securing major investment pledges in the US, has supported oil prices. At the same time, ongoing talks between Washington and the European Union are boosting hopes for further trade easing, which could strengthen demand expectations for crude,' said Osama Al Saifi, managing director for Mena at Traze. 'Nonetheless, lingering uncertainties regarding the timing and scope of these agreements may temper market optimism, limiting the potential for a significant short-term price rally,' he added.
Wall Street Journal
5 days ago
- Business
- Wall Street Journal
Mortgage Rates Today, July 25, 2025: 30-Year Rates Drop to 6.75%
Mortgage rates are down and still under 7%. Today's national average on a 30-year fixed-rate mortgage is 6.75%, according to Bankrate. If you choose a 15-year fixed-rate mortgage, the average rate is 5.91%. Mortgage rates have been elevated recently as investors wait to see the economic effects of the Trump administration's tariff policies. In June, inflation rose 2.7% year over year, an acceleration from the previous month. It's still unclear if tariffs will push prices up further in the coming months. If they do, mortgage rates could climb higher this year. The Fed is expected to keep the federal funds rate steady at its meeting next week, which means mortgage rates are unlikely to fall soon. Top mortgage rates today Current mortgage rates are down and lower than they were seven days ago. Rates are lower than they were in early 2025, when the average 30-year fixed-rate mortgage reached above 7%. Even though Federal Reserve policy doesn't directly impact today's mortgage rates, they have been easing since the Fed began cutting rates in late 2024. Mortgage rates change regularly, so compare offers and consider the personal and market factors that influence your quoted mortgage rate. Term Today's average mortgage rate Last week's average mortgage rate Average mortgage rate change 30-year fixed 6.75% 6.77% -0.02% 15-year fixed 5.91% 5.95% -0.04% 5/1 ARM 6.03% 6.04% -0.10% 30-year fixed jumbo 6.78% 6.78% Unchanged Source: Data reflects interest rates, not APRs. Term Today's average mortgage rate Last week's average mortgage rate Average mortgage rate change 30-year fixed 6.78% 6.77% +0.01% 15-year fixed 6.11% 6.11% Unchanged 30-year fixed jumbo 6.71% 6.65% +0.06% Source: Data reflects interest rates, not APRs. During the last three years, mortgage rates have been on the rise. In early 2022, the average 30-year fixed rate was 4.72% and the 15-year fixed rate was 3.91%. Rates reached a recent peak in late 2023 at 7.79% for 30-year fixed-rate mortgages and 7.03% for 15-year fixed-rate mortgages. Since then, rates have fallen as far as 6.08% (30-year fixed) and 5.15% (15-year fixed), but then began moving higher again. While these rates represent relatively recent heights for mortgage rates, average 30-year rates peaked above 16% in the early 1980s. The lowest-ever 30-year fixed rate, slightly below 3%, appeared in 2021. Today's mortgage rates are influenced by economic and market conditions, as well as personal factors. The rate you're quoted by a lender might be higher or lower than the national average. Here are some of the items considered when calculating your mortgage rate: 10-year Treasury yield: Current mortgage rates, especially on a 30-year fixed-rate mortgage, are related to movements in the 10-year Treasury yield. Current mortgage rates, especially on a 30-year fixed-rate mortgage, are related to movements in the 10-year Treasury yield. Mortgage-backed securities: The rate investors earn on mortgage-backed securities also plays a role. Spreads between mortgage-backed securities and Treasury yields, as well as between what lenders offer borrowers and mortgage-backed security rates, impact current mortgage rates. The rate investors earn on mortgage-backed securities also plays a role. Spreads between mortgage-backed securities and Treasury yields, as well as between what lenders offer borrowers and mortgage-backed security rates, impact current mortgage rates. Investor sentiment: Perceptions about fiscal policy and economic conditions can affect how Treasuries move, as well as how much risk lenders feel comfortable taking on. Perceptions about fiscal policy and economic conditions can affect how Treasuries move, as well as how much risk lenders feel comfortable taking on. Personal credit history: The information in your credit report and your credit score influence your mortgage rate quote. The information in your credit report and your credit score influence your mortgage rate quote. Income: Lenders look at your income relative to your potential mortgage payment and other debts you have. If it appears you can handle your mortgage payments with relative ease, they feel more comfortable lending you money. Lenders look at your income relative to your potential mortgage payment and other debts you have. If it appears you can handle your mortgage payments with relative ease, they feel more comfortable lending you money. Down payment: Your mortgage rate might be lower if you make a larger down payment; often, the best results are when you put at least 20% down. Your mortgage rate might be lower if you make a larger down payment; often, the best results are when you put at least 20% down. Points paid: Mortgage points, also known as discount points, are fees paid upfront as a way to directly reduce your rate and lower your monthly payments. Each point, which represents 1% of your loan amount, can potentially reduce your rate by up to 0.25 percentage points. Mortgage points, also known as discount points, are fees paid upfront as a way to directly reduce your rate and lower your monthly payments. Each point, which represents 1% of your loan amount, can potentially reduce your rate by up to 0.25 percentage points. Loan term: A 15-year mortgage rate is usually lower than a 30-year rate. By choosing a shorter term, you might be able to get a lower interest rate, but your monthly payment might be higher. How to choose the right mortgage for your financial goals When considering a mortgage, review your financial situation and goals. Often, 30-year fixed-rate mortgages are chosen because they spread a large payment over a longer period of time, making monthly payments more affordable. Even though the loan costs more overall, it might be more affordable on a day-to-day basis. If your main concern is becoming debt-free sooner while paying less interest and you can afford a higher monthly payment, a shorter-term loan might make sense. Let's say you get a $350,000 loan. Here's what you might pay with different mortgage terms: 30-year loan (6.97%): Monthly payment of $2,321.51 and total interest amount of $485,744.05 Monthly payment of $2,321.51 and total interest amount of $485,744.05 20-year loan (6.74%): Monthly payment of $2,659.19 and total interest amount of $288,206.46 Monthly payment of $2,659.19 and total interest amount of $288,206.46 15-year loan (6.20%): Monthly payment of $2,991.45 and total interest amount of $188,461.10 Monthly payment of $2,991.45 and total interest amount of $188,461.10 10-year loan (6.16%): Monthly payment of $3,913.90 and total interest amount of $119,667.88 These scenarios don't include other costs, like insurance and property taxes, that you might also be subject to. It's important to consider those costs as well. For example, you might think you can afford the payments on a 20-year or 15-year mortgage, but once you add in other homeownership costs, your budget might feel tight. Don't forget other homeownership costs that might impact your monthly budget, including maintenance, repairs, utilities and other expenses that might be higher once you move into a house. When choosing a mortgage, the principal and interest payments aren't the only considerations. One strategy might be to choose a longer loan, but make extra payments to pay down the debt faster and reduce the amount of interest you pay. With this approach, you can choose to pay extra each month, but if you need to cut back due to emergency, you can revert to the required lower monthly payment with a lower risk of not being able to meet the obligation. If you lock into a shorter loan term with a higher payment, you can't scale back payments later without risking the loss of the home.
