Interest rate

We are the central bank for the euro, and it is our mandate to keep prices stable. When prices in our economy are rising too fast – that is, when inflation is ...

These are the rates we offer banks that want to borrow from us and for the electronic money they keep with us overnight. In normal times, if inflation is too high because of too much demand chasing too few goods and services, we can raise rates to make credit more expensive. Many companies are also finding it more difficult to get the materials, spare parts and workers they need for production, which is worsening problems that were already there because of the pandemic. The same applies to interest rates: when businesses and people want to spend and invest, but they can’t easily get enough credit, interest rates tend to go up, because there is less credit available. We are the central bank for the euro, and it is our mandate to keep prices stable. So, the interest rate is essentially what the bank charges you for lending you money.

Denmark, which has had negative interest rates longer than any other country, mirrored the European Central Bank and raised its benchmark rate to protect ...

Denmark, which has had negative interest rates longer than any other country, mirrored the European Central Bank and raised its benchmark rate to protect the krone’s peg to the euro.

Bank surprises markets with 0.5 percentage point rise as inflation reaches 8.6% in eurozone.

Today’s decision shows that the ECB is more concerned about this credibility than about being predictable.” He said the causes of inflation would not be affected by the interest rate rise, but the ECB was wise to make a bigger splash ahead of a possible downturn. The collapse of Italy’s government earlier today increased the cost of Rome’s borrowing and put pressure on the ECB to step up its “anti-fragmentation” programme, designed to protect countries that come under debt financing stress. ECB officials have come under pressure from German, Dutch and Austrian officials to increase borrowing costs despite concerns that debt financing costs would escalate for southern European members of the euro currency bloc. The ECB raised its three key interest rates to 0.50%, 0.75% and 0% respectively, ending an era of negative rates dating back to the Greek debt crisis of 2012. Speaking at a press conference after the decision, she said the depreciation of the euro against the dollar had raised import costs, adding to inflationary pressures.

The European Central Bank has raised rates as it tries to tackle soaring eurozone inflation.

"And then they had two years of the pandemic, huge crisis. The wages are increasing in Greece. The eurozone is vulnerable because it relies heavily on Russia for its oil and gas. As the huge investments that I'm describing are actually happening. And now they're seeing the energy crisis. When they happen, they will just live through it." Inflation is the pace at which prices are rising. "And there are a lot of jobs available and a lot more going to become available. The ECB began cutting interest rates after the 2008 financial crisis to stimulate growth, and took them as low as -0.5% during the pandemic. The bank says further rate hikes "will be appropriate" and that it will take a "meeting-by-meeting" approach to raising rates. It comes after the Bank of England and the US Federal Reserve also put up their rates to try and rein in rising prices. The rate has been negative since 2014 in a bid to boost the region's economy after years of weak growth.

South Africa surprised financial markets by delivering its biggest increase in borrowing costs in almost two decades and signaled a faster pace of hikes ...

The European Central Bank has raised interest rates for the first time in 11 years by a larger-than-expected amount, joining steps already taken by the US ...

Even without a total cutoff, Russia has steadily dialed back gas flows, leading EU leaders to accuse the Kremlin of using gas to pressure countries over sanctions and support for Ukraine. The Bank of England started the march higher in December, and even Switzerland's central bank surprised with its first increase in nearly 15 years last month. It's difficult to get right as central banks reverse what has been a decade of very low rates and inflation. Thursday's decision means the ECB joins the likes of the US Federal Reserve and other major central banks in raising interest rates. “The economic outlook is worsening by the day," said Carsten Brzeski, chief eurozone economist at ING bank. Taken together, these factors are significantly clouding the outlook for the second half of 2022 and beyond."

Concerns over runaway inflation have mounted amid economic uncertainty in wake of Russia's invasion of Ukraine.

The economies of eurozone countries have been particularly exposed to the war in Ukraine given their widespread dependence on Russian oil and natural gas. The ECB raised its benchmark deposit rate by 50 basis points to 0 percent on Thursday, despite for weeks guiding markets to expect a 25 basis point increase. The European Central Bank (ECB) has raised interest rates for the first time in 11 years.

The South African Reserve Bank's Monetary Policy Committee (MPC) has voted to hike interest rates by 75 basis points, taking the repo rate to 5.50% per ...

The world’s central bankers are unleashing the most aggressive tightening of monetary policy in decades to cool off surging inflation, Bloomberg reported. Growth in the third and fourth quarters is forecast to be 0.7% and 0.4%, respectively,” he said. The much-needed resumption of international travel and tourism will take time to generate large benefits,” he said. Risks to the inflation outlook are on the upside, with the Russian war in Ukraine a key stress point, Kganyago said. South Africa’s economic growth for 2022 has been revised upwards to 2.0% from 1.7% in the May meeting. “With rapid inflation and withdrawal of policy stimulus, the United States will also experience slower economic growth. The upswing has pushed real rates to the lowest in almost a quarter-century, Bloomberg said. Sustained policy accommodation, supply shortages and other restrictions have sharply increased the prices of many goods, services and commodities,” Kganyago said. The inflation rate reached 7.4% in June, the highest level since the global financial crisis and well above the 6% ceiling of the central bank’s target range. “Russia’s war in Ukraine will continue to impair production and trade of a wide range of energy, food and other commodities. The economy is forecast to expand by 1.3% in 2023 and by 1.5% in 2024, below the previous projection of 1.9% for both years at the time of the last meeting. As a result of higher global food prices, local food price inflation is also revised up and is now expected to be 7.4% in 2022 (up from 6.6%), and 6.2% in 2023 (up from 5.6%). The food price inflation forecast for 2024 is unchanged at 4.2%.

Denmark's central bank raised its key interest rate by 0.5 percentage points to minus 0.1% on Thursday, following a rate hike earlier in the day by the ...

Unlike most central banks, Denmark does not adjust rates to control inflation. Register now for FREE unlimited access to Reuters.com Register now for FREE unlimited access to Reuters.com

The central bank increases cost of borrowing by three-quarters of a percentage point to tackle rising inflation.

The European Central Bank raised its key interest rate by 50 basis points, the first increase in 11 years and the biggest since 2000 as it confronts surging ...

The European Central Bank (ECB) hiked interest rates by a larger than expected 50 basis points as the central bank tries to get to grips with runaway ...

Retail trader data show 63.00% of traders are net-long with the ratio of traders long to short at 1.70 to 1. Recent changes in sentiment warn that the current EUR/ USD price trend may soon reverse higher despite the fact traders remain net-long. The ECB also announced details of its anti-fragmentation tool (TPI), a new bond-purchase program designed to help member states with higher borrowing costs. The scale of TPI purchases depends on the severity of the risks facing policy transmission. The ECB’s new anti-fragmentation tool, the Transmission Protection Instrument (TPI) ‘will be an addition to the Governing Council’s toolkit and can be activated to counter unwarranted, disorderly market dynamics that pose a serious threat to the transmission of monetary policy across the euro area. The central bank said that further rate normalization would be appropriate at further meetings and that APP reinvestments (bond buying) would run for as long as needed.

The repo rate has been hiked by 75 basis points on Thursday. This brings the repo to 5.5% and the prime rate to 9%. Three members of the monetary policy ...

The rand has already started to weaken in response, breaching R17/$ for the first time since 2020. This is the biggest hike since September 2002, when the repo rate was hiked by 100 basis points amid an emerging market crisis. By hiking interest rates, the Reserve Bank wants to cool down inflation by suppressing demand in the economy. The monthly payment on that mortgage has now climbed by almost R3 000 since November last year. The US Federal Reserve looks set to hike its key rate by another 75 basis point rate next week, in an effort to subdue inflation. This will drive inflation even higher.

The European Central Bank (ECB) on Thursday announced it is raising its interest rates by 0.5 percentage points, 0.25 points more than it had signalled in ...

“It has been said many times that interest rates being at zero isn’t the normal state of things. If your interest rate is then adjusted and you’ve only paid a margin of let’s say 0.6 per cent for the past year or two, the end result will be 1.8 per cent. “On Friday, the new interest rate will be about 1.2 per cent plus the [loan] margin. Euribor 12, the most common reference rate for housing loans in Finland, had already priced in the expectation that interest rates will be raised by one percentage points between July and September. Nordea in June forecast that the 12-month Euribor could climb to about 2.75 per cent by mid-2023. You really should think about these kinds of things proactively.”

The interest rate increase will take money out of consumer pockets – at a rate of R1,670 per month for a R1 million home loan, compared to a year ago. Here is ...

Base on those numbers, the cost of credit every month is up R55 compared to a year ago. At the highest rate of interest allowed, set at the repo rate plus 14 percentage points, that average R50,000 of unsecured credit is now just about R80 per month more expensive than it was in July 2021. Here's how much the interest rate increase will cost you in rand terms compared to a year ago, based on the average costs of homes and cars, average short-term borrowing, and typical or maximum interest rates. First-time buyers and those who have to stretch farther to afford a home tend to pay above prime, while those in better financial shape can get rates at below prime, so the impact of an interest rate increase is predominantly felt by the less-than-rich. - The interest rate increase will take money out of consumer pockets – at a rate of R1,670 per month for a R1 million home loan, compared to a year ago. The big-jump increase in rates – the biggest single increase in interest rates since 2002 – comes just after Statistics South Africa announced the highest rate of consumer inflation South Africa has recorded in 13 years.

The South African Reserve Bank's (SARB) Monetary Policy Committee (MPC) on Thursday (21 July), hiked the repo rate by 75 basis points to 5.5% – taking the…

New monthly cost (9%) “Banks’ lending criteria will be getting stricter, but they’re also likely to have fewer applicants as affordability declines,” he said. “In reality, we spent the full four years preceding the pandemic with prime hovering between 10% and 10.5%. Even if the SARB continues its current rate of hikes, we won’t hit those pre-pandemic levels for many months to come.” Seeff said other factors could have a bigger impact on the local property market. He said that while the SARB is understandably faced with a difficult task and the rate hike may support the currency, this alone will not turn the tide. “The reality is that the weaker rand and inflation spike to 7.4% has accelerated rate increases.