Tag: Interest

Australia central bank holds interest rates, signals easing ahead

FILE PHOTO: A worker delivering parcels pushes a trolley past the Reserve Bank of Australia building in central Sydney, Australia, March 7, 2017. REUTERS/David Gray

SYDNEY (Reuters) – Australia’s central bank left its cash rate at a record low on Tuesday but hinted at further monetary easing to bolster the coronavirus-hit economy, which is suffering its worst contraction since the Great Depression.

The Reserve Bank of Australia (RBA) kept the rate unchanged at 0.25%, as widely expected in a Reuters poll, and at the level it has stood since an emergency cut in mid-March.

“The Board views addressing the high rate of unemployment as an important national priority,” RBA Governor Philip Lowe said in a statement announcing the outcome of the policy meeting.

“The Board continues to consider how additional monetary easing could support jobs as the economy opens up further.”

The government is due to release its budget on

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These credit cards still have sky-high interest rates despite the Fed’s rate cut

When the Federal Reserve dropped interest rates to 0% earlier this year, the rates on many consumer loans followed suit. Some store credit cards have proven to be the exception.



a man and a woman sitting at a table: Taking out a store credit card to help pay for that new piece of jewelry could be a mistake.


© Getty Images/iStockphoto
Taking out a store credit card to help pay for that new piece of jewelry could be a mistake.

A new report from CreditCards.com looked at the interest rates banks are charging for store cards — credit cards that are issued, often at checkout, by retailers. On average, retail cards now carry an annual percentage rate of 24.43%, down from 26% a year ago.

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But some retailers have kept their rates high. The CreditCards.com report analyzed 84 retail cards. Of those, 15 credit cards have the same rate as a year ago, while two have upped the APR they charge.

What’s more, multiple retailers offer store cards that come with an industry-high interest rate of

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I’m not using my small business loan so I’m earning interest on it

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  • My freelance income didn’t drop much at the start of the pandemic, but I was worried I wouldn’t be able to work as much once I was homeschooling my son, so I took out an Economic Injury Disaster Loan.
  • Right now, I don’t need the loan to keep my business afloat, so I wanted to keep it somewhere where it would earn interest.
  • I considered a CD, but rates aren’t great and my money would be locked away, so I decided on a high-yield savings account where I can access it if I need it.
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This year has been

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4 Ideas For Our Near-Zero Interest Rate ‘Sistine Chapel’ Fixed-Income Market

Question: What does the fixed income market have in common with the Sistine Chapel? Answer: The main action is on the ceiling. The Federal Reserve recently strengthened the scaffold holding us up by suggesting rate increases won’t come before 2023. And as shown in the accompanying illustration, alternative scenarios, movement away from the ceiling, are most likely to be downward. Stay-in-place-or-fall is not an ideal set of scenarios for less-risk-tolerant fixed-income investors. We offer four ETF ideas for this highly-challenging asset class.

© Can Stock Photo / savcoco

The End Of An Era

For the better part of 40 years, quants, asset managers and advisers thrived on being able to present performance records that trended nicely upward, sometimes with some interruptions, but on the whole, distinctly upward. That’s gone the way of airports without security, where anyone can walk up to any gate any time.

A lot of that was

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Four Ideas For Our Near-Zero Interest Rate ‘Sistine Chapel’ Fixed-Income Market

Question: What does the fixed income market have in common with the Sistine Chapel? Answer: The main action is on the ceiling. The Federal Reserve recently strengthened the scaffold holding us up by suggesting rate increases won’t come before 2023. And as shown in the accompanying illustration, alternative scenarios, movement away from the ceiling, are most likely to be downward. Stay-in-place-or-fall is not an ideal set of scenarios for less-risk-tolerant fixed-income investors. We offer four ETF ideas for this highly-challenging asset class.

© Can Stock Photo / savcoco

The End Of An Era

For the better part of 40 years, quants, asset managers and advisers thrived on being able to present performance records that trended nicely upward, sometimes with some interruptions, but on the whole, distinctly upward. That’s gone the way of airports without security, where anyone can walk up to any gate any time.

A lot of that was

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Fed Vice-Chair Clarida says central bank won’t raise interest rates from near-zero until it sees 2% inflation for months

  • Federal Reserve Vice Chairman Richard Clarida told Bloomberg on Wednesday that the central bank will not raise interest rates until it sees 2% inflation for at least a few months and full employment is reached. 
  • “We’re not going to even begin to think about lifting off,” until then, said Clarida. 
  • He added that he is projecting a “pretty impressive return” to very low unemployment in the US within three years.

Federal Reserve Vice Chairman Richard Clarida told Bloomberg that the central bank won’t raise interest rates until it sees 2% inflation for at least a few months and full employment is reached.

“We’re not going to even begin to think about lifting off, we expect, until we actually get observed inflation — and we measure it on a year-over-year basis, equal to 2%,” he said. “Also we want our labor market indicators to be consistent with maximum

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Pakistan central bank holds interest rate at 7% as outlook improves

By Syed Raza Hassan

KARACHI (Reuters) – Pakistan’s central bank held its benchmark policy rate at 7% on Monday, saying the economy looked set to pick up due to the lifting of lockdown restrictions aimed at curbing the coronavirus pandemic though risks remained.

“Business confidence and the outlook for growth have improved,” the State Bank of Pakistan said in its monetary policy statement. “This reflects the decline of COVID-19 cases in Pakistan and the easing of lockdowns.”

The central bank had slashed rates by 625 basis points in the three months to June, the most pronounced cuts in its history, as the pandemic hit the South-Asian nation.

The bank said that economic growth was expected to pick up to around 2% in the financial year 2021, compared to a contraction of 0.4% in the year ended June.

The decision was largely in line with expectations that the bank would ease

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Banking Central | An ‘Aatmanirbhar’ interest waiver solution on the cards?



a close up of a sign: Banking Central | An ‘Aatmanirbhar’ interest waiver solution on the cards?


© Dinesh Unnikrishnan
Banking Central | An ‘Aatmanirbhar’ interest waiver solution on the cards?

The final outcome of the ongoing interest waiver case in the Supreme Court is anybody’s guess. Thousands of borrowers who availed moratorium facility are anxiously awaiting an answer. Borrowers obviously want a full waiver of the interest amount during the six months moratorium period. If there is no waiver, they will be charged compound interest and the loan repayment burden will significantly shoot up. And if that happens then banks will have to take a substantial hit—RBI estimates this at around Rs 2 lakh crore.

It is fair to expect that considering the opposition from the RBI and the government, the SC may stop short of ruling for a total waiver. The court could limit its view suggesting that compound interest, or interest-on-interest, shouldn’t be charged to the borrower as it amounts to a penalty. That

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NAB hits back at Afterpay with a no interest credit card

NAB’s offering is different to Afterpay in several ways. It allows customers to repay balances over a longer period of time. It does not charge late fees and it does not charge any merchant fees to the retailer. It will only be offered after “responsible lending” checks are conducted, in the same way that NAB does for credit cards. It can be used anywhere Visa is accepted.

For a $1000 credit limit, customers will be required to pay $35 a month towards the balance, including a $10 monthly fee. For a $2000 limit, the monthly minimum repayment will be $75, including a $15 monthly fee;. At a $3000 limit, the repayment is $110 per month, including a $20 fee. Customers are required to pay the minimum payment or the card may be blocked. There are rewards attached to transactions.

Credit ‘training wheels’

Sally Tindall, director of research at RateCity, said

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