International Monetary Fund (IMF) has warned that slower growth rates among emerging markets are causing cash outflows and could cause another bout of crisis. Narrowing differential in growth prospects between advanced and emerging economies may add to the crisis situation again.
Tags: Interest rate
Global Stocks Near Record Highs as Fed Cuts Interest Rates
Global stocks are reaching record highs following recent interest rate cuts, while the Japanese yen weakened as the Bank of Japan opted not to raise rates, contrasting with trends in the US and UK.
Bank of Japan Expected to Present 'Paradigm Shift' on Inflation, Rate-Hike Cycle
The Bank of Japan (BOJ) said that it was preparing for an era of steady interest rate hikes by claiming victory over deflation, according to a major review of past policy that recognized a paradigm shift over consumer behavior.
ECB’s Interest Rates Remain Unchanged But May See Cuts in September
The European Central Bank announced that it would keep interest rates unchanged but may change by the next quarter.
Bank Indonesia Keeps Interest Rate at 6.25% Amid Faltering Rupiah
Bank Indonesia announced that its interest rate was maintained at 6.25% for a second month in a row since April despite the weakening of the rupiah.
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New Zealand's economy growth rate was higher than the forecasts for last quarter of 2015. Led by business services, retail, accommodation and construction sectors, the country's gross domestic product (GDP) surpassed the forecasts made by Reuters and Reserve Bank. But, the overall growth eased to 2.3 percent in 2015 from 4.1 percent in 2014.
The turbulent situation Japan's banking sector is likely to impact global markets. A leading hedge fund manager says that collapse in the Japan's banking industry blindsides the market, while shrugging off any possibility of banking crisis in the world's third largest economy.
Japan's regional banks are enhancing unsecured retail lending as it offers high profit margins. Loans on mortgage and small firm borrowing are declining. Japan banks are suffering from ultra-low interest rate regime to increase revenues.
Bank of England has many choices to boost Britain's economy. The bank may slack its financial policy on fears that the country may exit the European Union.
The UK's headline rate of inflation reached to 12-month high. However, it remained below the two percent target of Bank of England for two years. The consumer prices index rose following the price rise in oil, clothing and food products. Economists and consumers are looking to UK's central bank whether it'll raise interest rate or not.
The jobless rate in the UK was recorded at 5.1 percent for the quarter ending November 2015. This showed the lowest jobless rate since October 2005. However, wage growth is slowing down in the UK industry. The employment rate was at high of 74 percent since 1971, according to the latest data released by Office for National Statistics.
Record high employment rate and domestic spending propelled German GDP rate by 1.7 percent in 2015, according to the German authorities' calculation.
Bank of England has been keeping its interest rates at the lowest point at 0.5% since March 2009. However, some signals of the interest rate upsurge will be a shock to some people in Britain.
The Brazil's central bank will be under pressure to raise interest rate in 2016 amid gripped into the deepening recession. The borrowing cost is expected to rise by 0.25 percent next year. Brazil is suffering from rising inflation and easing productivity.
