Interest Rate

Private schools, dental visits fuel Australian inflation, pushing interest rate cuts off the table

The days are numbered for the Reserve Bank of Australia's easy-money policy. Photo: AFP

The laudable desire of Australians to be well educated and healthy is proving an expensive one, as escalating costs add to inflationary pressures even as the broader economy slows.

Monday, 3 February, 2014, 3:18pm

Why a recession would be good for China

If many big polluters were shut down, that would be a welcome change, despite the economic recession that would ensue. Photo: AP

China’s economic growth slowed in the final three months of last year to 7.7 per cent, the weakest quarter since 2009, but still way too fast to allow for the restructuring that the country urgently needs.

25 Jan 2014 - 3:21am 6 comments

Boost in Australian jobs eases pressure for rate cut

Glenn Stevens, governor of the Reserve Bank of Australia. Photo: Bloomberg

Australia unexpectedly boosted payrolls last month and unemployment declined as the job market withstood a weaker domestic outlook, prompting traders to push back bets on an interest-rate cut.

14 Jun 2013 - 3:49am

Euro rate stays at 0.5 per cent

The ECB slightly lowered its economic outlook for the euro area this year, saying output would decline by 0.6 per cent in 2013 but grow by 1.1 per cent next year. Photo: AFP

The European Central Bank kept its main interest rate on hold at a record low 0.5 per cent yesterday, saying that improved economic data in May confirmed its forecast of a gradual recovery from prolonged recession later this year.

7 Jun 2013 - 3:46am

Beijing forecast to lift interest rates as growth slows

Economists are forecasting that the People's Bank of China is more likely to raise interest rates than cut them in the coming year. Photo: AFP

Economists are forecasting that the People's Bank of China is more likely to raise interest rates than cut them in the coming year, even as they slash growth projections for the world's second-largest economy.

24 May 2013 - 4:05am

Beijing prepares rates reform to ease yuan curbs

The headquarters of the People's Bank of China in Beijing. Photo: Xinhua

The government could scrap the floor for lending rates as early as the end of this year, according to Ba Shusong, a researcher at the Development Research Centre, a policy think tank of the State Council, in a move that would allow market forces to play a bigger role in setting interest rates.

24 May 2013 - 4:38am

Australia's central bank cut rates as currency stayed strong, minutes show

Australian borrowing costs were cut to 2.75 per cent this month.

The Reserve Bank of Australia cut its benchmark interest rate to a record low this month to boost businesses weakened by the currency's sustained strength, even as households reacted to earlier reductions.

22 May 2013 - 4:34am

Hong Kong to snap up government offer of inflation-linked bonds

The new 'iBonds' are expected to be sold with an underlying reference rate of inflation of 3.5 per cent and raise about HK$10 billion for the government. Photo: May Tse

The Hong Kong Monetary Authority's anticipated sale of a third tranche of inflation-linked bonds is set to meet with a rich vein of demand despite a recent decline in the rate of consumer price rises.

17 May 2013 - 6:35am

Now is the right time for interest rate reforms in China

A woman reads the newspaper outside the People's Bank of China in Beijing. Photo: AP

Now is the right time to loosen state controls on interest and exchange rates, a move that can only serve to boost China's market economy. At a State Council meeting on May 6, nine priorities were mapped out to widen economic reforms. For reform of the financial system, the first two priorities are the gradual introduction of measures to liberalise interest rates and exchange rates.

16 May 2013 - 2:47am

Talking points

Suu Kyi supporters arrive in Beijing.

Suu Kyi supporters arrive in Beijing

8 May 2013 - 3:20am

Australia cuts key interest rate to record low

The aussie's strength a concern.

RBA governor Glenn Stevens reduced the overnight cash rate target by a quarter percentage point to 2.75 per cent, saying in a statement the Australian dollar's record strength "is unusual given the decline in export prices and interest rates".

8 May 2013 - 5:52am

Slowdown prompts third India rate cut

The door may be closing for an additional rate cut in India.

After meeting in Mumbai, the Reserve Bank of India said that the benchmark repo rate, at which it lends to commercial banks, would fall to 7.25 per cent, as expected by most economists.

4 May 2013 - 4:31am

Interest rate on yuan deposits set to drop

Yuan deposits in Hong Kong grew 2.5 per cent in March.

The Treasury Markets Association's webpage showed that the yuan interbank offered rate with a tenor of 12 months fell to 2.7 to 2.9 per cent from 2.8 to 3per cent after the authority announced that it would relax two requirements to allow banks to use less capital for yuan business and encourage them to offer more yuan loans and other products.

1 May 2013 - 3:46am

Big banks worry as mortgage interest rate gaps opens with smaller lenders

The divide between lending rates at big and small banks means smaller operators can get more of a shrinking mortgage pie. Photo: Sam Tsang

Hong Kong's big banks are anxious to see smaller peers follow the rises in mortgage interest rates the largest operators announced earlier this month, after a gap opened up that could let smaller lenders poach business.

25 Mar 2013 - 5:38am

Interest rate liberalisation likely to dominate bankers' talk at NPC meeting

With official rates low, shadow banking has boomed.

Business transformation is expected to dominate the talk of banker deputies and delegates when the National People's Congress (NPC) and the Chinese People's Political Consultative Conference (CPPCC) convene next month.

28 Feb 2013 - 5:42am