The Bank of England warned on Tuesday about “significant pressure” on households and businesses due to higher inflation and borrowing costs, but said they were more resilient than before the global financial crisis. The BoE had previously flagged that Britain was entering a lengthy recession and, with inflation at a 41-year high and a sharp … Read more
US home sales are extending declines as Federal Reserve tightening boosts mortgage rates. That has helped tame inflation, which is now retreating from four-decade highs. But a housing market slowdown also increases the risk of a recession. Housing could be about to become a key policy puzzle for the Federal Reserve. Market activity has fallen … Read more
In the past few weeks, a number of high-profile US tech companies have announced layoffs. Meta is laying off 11,000 workers and Amazon 10,000. The ongoing purge at Twitter could see its employee base of 7,500 shrink by about 75%. About 42,000 workers in US tech companies lost their jobs in November alone, according to … Read more
Jurrien Timmer, the director of global macro in Fidelity‘s Global Asset Allocation Division, has raised questions on why the U.S. Federal Reserve is committing to an extreme policy when inflation will no longer pose danger. What Happened: Timmer pointed out that the Treasury Inflation-Protected Security market and the Federal Reserve’s expected terminal rate were moving in the same … Read more
The pressure on asset quality of loans to micro small and medium enterprises (MSMEs) is set to increase, leading to a rise in non-performing assets (NPAs) in this segment in the next six months, according to a survey by the Federation of Indian Chambers of Commerce & Industry and the Indian Banks’ Association. Some of … Read more
On the back of rising inflation numbers, US federal reserve has hiked interest rates by 75bps. Here are some key takeaways after today’s much-anticipated decision: – The US Federal Reserve has raised its benchmark rate by 75 basis points — the biggest increase since 1994 — to a range of 1.5%-1.75%. This comes in line … Read more
Key reasons for this dilemma and my take on them. Checkout if it makes sense to you.
Expecting the banking sector’s financial fundamentals to improve ahead, Moody’s in its research note said, declines in loan-loss provisions and increases in net interest margins will boost banks’ profitability. Capitalization, funding, and liquidity will be stable and support loan growth. In Moody’s opinion, banks operating environment will be stable as the economy gradually recovers from … Read more
The Reserve Bank on Friday slashed economic growth projection to 7.2 per cent for the current fiscal from 7.8 per cent estimated earlier amid volatile crude oil prices and supply chain disruptions due to the ongoing Russia-Ukraine war. However, the central bank asserted that it will use all available tools to defend the Indian economy. … Read more