Latest news with #interestrate
Bloomberg
17 hours ago
- Business
- Bloomberg
Soaring Czech Home Prices Spell End to Easing, Policymaker Says
Czech interest-rate cuts are 'almost certainly' over for now as the central bank tackles inflation risks from soaring property prices, consumer spending and an improving economic outlook, a senior policymaker said. After a rapid pace of monetary easing last year, rate setters at the Czech National Bank have applied a stop-and-go approach since December. Market bets are predicting a hold on the benchmark rate at 3.5% on Aug. 7, but some analysts still see room for easing in the months ahead.
Bloomberg
17 hours ago
- Business
- Bloomberg
Chile's Central Bank Is Set to Deliver First Interest Rate Cut of 2025
Chile's central bank will likely cut its interest rate by a quarter-point on Tuesday, lowering borrowing costs for the first time this year as policymakers seize on an improving inflation outlook. Board members led by Rosanna Costa will reduce the overnight rate to 4.75% after markets close, according to all economists in a Bloomberg survey. Policymakers have kept borrowing costs steady for the last four meetings after having lowered them from a high of 11.25% seen in mid-2023.
Zawya
a day ago
- Business
- Zawya
Pakistan's central bank seen cutting interest rate by 50bps as inflation cools
KARACHI: Pakistan's central bank is expected to cut its key interest rate by 50 basis points to 10.5% on Wednesday, a Reuters poll showed, with a unanimous forecast for further easing as inflation slows and external balances improve. All 14 analysts surveyed expect the State Bank of Pakistan to cut rates, with nine projecting a 50 bp cut - also the median forecast - while four see a deeper 100 bp cut and one a 25 bp reduction. Consumer price inflation stood at 3.2% in June, while average inflation for the fiscal year ending June 30 fell to a nine-year low of 4.49%, from 23.4% the year before. With real rates firmly positive, most analysts expect easing to continue, backed by stabilising indicators and high government borrowing costs. Sana Tawfik, head of research at Arif Habib Limited, said slowing inflation and an improved external account give the SBP room to cut, but warned that rising imports and currency pressure called for a cautious, data-driven approach. Reserves, supported by International Monetary Fund inflows under a $7 billion programme and bilateral financing, have grown to more than $14 billion. Renewed rupee pressure triggered a security-led crackdown on informal dollar trade, underscoring the government's push to stabilise the exchange rate as the central bank considers further easing. The SBP began cutting rates from a record 22% in June 2024 before pausing in March after 10 percentage points of easing. It then cut by a further 100 bps in May but held again in June as Iran-Israel tensions escalated. Earlier this month, SBP Governor Jameel Ahmad told the Reuters NEXT Asia summit that the central bank would maintain a 'tight' stance to stabilise inflation within its 5–7% target, adding that its policy was already affecting both inflation and the external account. Ahmed Mobeen, senior economist at S&P Global Market Intelligence, said the SBP is likely to cut rates further but may adopt a more "cautious" pace in the second half of the year due to rising import demand and global commodity risks. Mustafa Pasha, chief investment officer at Lakson Investments, said the central bank could gradually lower rates into the high single digits in the first half of 2026, given stronger buffers and the completion of the budget and IMF review. S&P Global upgraded Pakistan's rating to 'B-' from 'CCC+' last week, citing lower inflation, fiscal consolidation and stronger reserves.
Reuters
a day ago
- Business
- Reuters
Pakistan's central bank seen cutting interest rate by 50 bps as inflation cools: Reuters poll
KARACHI, July 29 (Reuters) - Pakistan's central bank is expected to cut its key interest rate by 50 basis points to 10.5% on Wednesday, a Reuters poll showed, with a unanimous forecast for further easing as inflation slows and external balances improve. All 14 analysts surveyed expect the State Bank of Pakistan to cut rates, with nine projecting a 50 bp cut - also the median forecast - while four see a deeper 100 bp cut and one a 25 bp reduction. Consumer price inflation stood at 3.2% in June, while average inflation for the fiscal year ending June 30 fell to a nine-year low of 4.49%, from 23.4% the year before. With real rates firmly positive, most analysts expect easing to continue, backed by stabilising indicators and high government borrowing costs. Sana Tawfik, head of research at Arif Habib Limited, said slowing inflation and an improved external account give the SBP room to cut, but warned that rising imports and currency pressure called for a cautious, data-driven approach. Reserves, supported by International Monetary Fund inflows under a $7 billion programme and bilateral financing, have grown to more than $14 billion. Renewed rupee pressure triggered a security-led crackdown on informal dollar trade, underscoring the government's push to stabilise the exchange rate as the central bank considers further easing. The SBP began cutting rates from a record 22% in June 2024 before pausing in March after 10 percentage points of easing. It then cut by a further 100 bps in May but held again in June as Iran-Israel tensions escalated. Earlier this month, SBP Governor Jameel Ahmad told the Reuters NEXT Asia summit that the central bank would maintain a 'tight' stance to stabilise inflation within its 5–7% target, adding that its policy was already affecting both inflation and the external account. Ahmed Mobeen, senior economist at S&P Global Market Intelligence, said the SBP is likely to cut rates further but may adopt a more "cautious" pace in the second half of the year due to rising import demand and global commodity risks. Mustafa Pasha, chief investment officer at Lakson Investments, said the central bank could gradually lower rates into the high single digits in the first half of 2026, given stronger buffers and the completion of the budget and IMF review. S&P Global upgraded Pakistan's rating to 'B-' from 'CCC+' last week, citing lower inflation, fiscal consolidation and stronger reserves.
Yahoo
a day ago
- Business
- Yahoo
Top Forecaster Sees Loonie's Rise Tamed by Canada Rate Cuts
(Bloomberg) -- Canada's loonie will strengthen further against its US counterpart this year but its rise will be limited by the central bank's interest-rate cuts, according to the currency's most accurate forecaster in the second quarter. Can This Bridge Ease the Troubled US-Canadian Relationship? Budapest's Most Historic Site Gets a Controversial Rebuild Trump Administration Sues NYC Over Sanctuary City Policy Royce Mendes, managing director and head of macro strategy at Desjardins Securities, expects the Bank of Canada to cut rates three times this year while markets are pricing in less than one reduction. As a result, he sees the loonie trading at 1.35 per US dollar by year end. It traded weaker Monday at 1.3725 per US dollar, after gaining 0.2% last week. His out-of-consensus call on the three rate cuts is based on a view that a tariff-induced inflation flare-up has passed and the central bank will lower rates to aid the economy. 'I think that there is probably somewhat limited room for further strength this year,' said Mendes. 'We think the market has moved too far in terms of pricing out the chance that the Bank of Canada returns to rate cuts this fall or winter.' Analysts including Mendes expect policymakers to hold rates steady during the Wednesday meeting. Any further appreciation for the loonie that's coming from increased hedging flows or dollar weakness could be limited by the monetary easing, Mendes added. The loonie had been hit by President Donald Trump's tariffs earlier this year but has recovered since then, with the greenback weakening against many currencies. While several forecasters predicted a move to a stronger loonie in the second quarter, Desjardins topped a Bloomberg ranking, which takes into account several criteria including timing of the forecast and margin of error. 'We said it's going to reverse based on the hedging activity, on the potential for a less aggressive trade stance from the US with regards to Canada,' he said. Even so, while all currencies in the Group of 10 have advanced, the loonie is still lagging the cohort year-to-date. (Updates pricing in the third paragraph, adds details on ranking in the seventh.) Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Elon Musk's Empire Is Creaking Under the Strain of Elon Musk Confessions of a Laptop Farmer: How an American Helped North Korea's Wild Remote Worker Scheme Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
