Interest Rates

Royal Bank of Scotland fined US$612m for rate rigging

Arthur Yuen Kwok-hang, HKMA's deputy chief executive

More than a dozen traders at RBS offices in London, Singapore and Tokyo manipulated the London interbank offered rate, which is used to price trillions of dollars worth of loans, from at least 2006 until 2010.

Thursday, 7 February, 2013, 5:17am

Antony Leung warns rising interest rates could derail flat supply boost

Antony Leung Kam-chung

Leung warned of a repeat of the failed "85,000 flats a year" target announced by then chief executive Tung Chee-hwa in 1997. By the time the new flats were ready, he said, the market would have shrunk due to external economic factors, leaving it unable to absorb all the flats.

3 Feb 2013 - 5:36am 13 comments

India on course to cut rates this week

The Reserve Bank of India. Photo: Retuers

India's central bank is expected to cut interest rates this week for the first time in nine months in response to the government's recent economic reforms and slowing inflation, economists say.

28 Jan 2013 - 4:39am

Gold to test US$2,000 level amid low interest rates and rise in demand

Gold bars, coins, jewellery and industrial gold are expected to see long-term demand, with their value rising further as countries ease their monetary policies. Photo: Reuters

Gold may test the US$2,000 threshold this year, say fund managers and gold traders, who believe low interest rates and rising demand for physical gold from Asia will boost prices.

According to British fund house Schroders, gold has generated handsome returns for its investors - 461 per cent - in the past 10 years.

10 Jan 2013 - 4:21am

Australia home prices may see rise by up to 10pc

The Reserve Bank of Australia has cut the cash rate by 1.75 percentage points since November 2011 to match a 50-year low. Photo: Reuters

Australia's flagging property market is poised to get a boost from record low interest rates and a housing shortage that could increase prices by as much as 10 per cent this year.

9 Jan 2013 - 3:26am

ECB expected to usher in new year with steady interest rates

Mario Draghi

The European Central Bank will usher in 2013 with steady interest rates at its first policy meeting this year to keep up the pressure on governments to solve the debt crisis, analysts predict.

7 Jan 2013 - 4:31am

Quantitative easing and macro factors keys to investment success

The American comedian Will Rogers provided sage advice about investing: "Don't gamble. Take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it."

31 Dec 2012 - 4:58am

Monetary Authority investigates UBS over possible Hibor rate misconduct

Hong Kong Monetary Authority said it has begun investigating UBS for possible misconduct involving the setting of the city's interbank interest rate. Photo: Reuters

Hong Kong's de facto central bank said it has begun investigating UBS for possible misconduct involving the setting of the city's interbank interest rate, raising fresh concerns that the Swiss bank faces more trouble.

21 Dec 2012 - 4:33am

Major banks convicted in Milan fraud case

Deutsche Bank will appeal.

Deutsche Bank, JP Morgan Chase, UBS and Depfa Bank have been convicted by a judge in Milan for their role in overseeing fraud by their bankers in the sale of derivatives to the city.

Judge Oscar Magi yesterday ordered that about €90 million (HK$926 million) of assets be seized from the banks and that the firms pay sanctions of €1 million each. He also convicted nine bankers of fraud.

20 Dec 2012 - 3:19am

UBS fined HK$12b for rigging global interest rates

UBS employees paid bribes to rig Libor rates, the FSA said. Photo: AP

UBS, Switzerland's biggest bank, must pay about 1.4 billion Swiss francs (HK$11.84 billion) to US, British and Swiss regulators for trying to rig global interest rates, triple the penalties levied against Barclays.

20 Dec 2012 - 3:19am

Organised bank crimes

Events at Royal Bank of Scotland Group are at the heart of the biggest scandal in banking history. Photo: Bloomberg

Every morning, from his desk by the bathroom at the far end of Royal Bank of Scotland Group's trading floor overlooking London's Liverpool Street station, Paul White punched a series of numbers into his computer.

15 Dec 2012 - 3:12am

Learning from history

Federal Reserve chairman Ben Bernanke announces the central bank's fiscal commitment to improving the labour market. Photo: AFP

United States Federal Reserve chairman Ben Bernanke has moved the central bank further into uncharted policy territory in combating joblessness by tying the bank's interest rate outlook to unemployment and inflation, while committing its balance sheet to an even faster expansion.

14 Dec 2012 - 3:00am

Federal Reserve to spend US$45 billion to sustain bond purchases

Ben Bernanke, chairman of the U.S. Federal Reserve.

The Federal Reserve will keep interest rates super-low to boost the U.S. economy even after the job market has improved significantly.

13 Dec 2012 - 7:34am

The Week Explained: Low interest rates

Time to yield to temptation? Let's shoot down that argument. Photo: Corbis

We are stuck in a low interest rate environment likely to remain at this level for some time, not least because governments are competing aggressively to keep rates down to avoid an appreciation in the value of their currencies.

10 Dec 2012 - 2:28am

Low interest rates to spur New Zealand homes market

The Lyall Bay suburb of Wellington. Two-thirds of New Zealanders surveyed expect home prices to keep going up. Photo: Bloomberg

More New Zealand consumers expect house prices to rise in the next 12 months, as demand spurred by record-low interest rates outstrips supply.

21 Nov 2012 - 3:18am