Interest Rates

What Do Divergent Monetary Policies Mean for You?

The world has become increasingly globalized over time, especially when it comes to large countries like the U.S. and regions like the E.U. With the …

Economics

0% Financing Deals Bite Back Retailers as Fed Raises Rates

The Federal Reserve is pushing interest rates higher. Don’t tell that to people who have become accustomed to buying everything at 0%.<p>Years of rock-bottom interest rates have led to a proliferation of no-interest financing offers for people looking to buy everything from cars to lawn mowers, …

Money

The Long View - Rates, GDP And Challenges

There has been much debate about the current low levels of interest rates in the economy today. The primary argument is that the "30-year bull market …

Business

History Is No Help When Handicapping the Bond Market

Markets are never perfect in their predictive abilities but they tend to be forward-looking in how they trade to anticipate what will happen next. Take last week's interest-rate increase by the Federal Reserve, its third since December 2015, and the bond market.<p>Bond yields have been rising for some …

Commodities

What if breakeven inflation and the “term premium” are measuring the same thing?

There are two simple ways to think about long-term bonds yields:<p>Traders’ best guesses about future short-term interest rates plus something extra — …

Commodities

Europe's Murky Path to Normal Monetary Policy

Much like a father holding the hand of his anxious son through a dark alleyway, the European Central Bank is striving to give markets guidance over how it will normalize its monetary policy.<p>The ECB has told investors that it intends quantitative easing to continue at a pace of 60 billion euros a …

Business

Feeling nervy about the Rand? Here's the perfect JSE-listed hedge. Courtesy of RMB.

<i>Necessity is the mother of invention. And in a turbulent socio-political environment like South Africa’s, wealth protecting innovations are in vogue.</i> …

ETFs

Playing Better Defense With Rate-Hedged High-Yield Bonds

<i>By Bradley Krom</i><p>In our weekly asset allocation meetings, a key debate to start 2017 centered on whether the Federal Open Market Committee would hike …

Stocks

Markets are doing the US Fed a massive favour

Last week the US Federal Reserve hiked interest rates for the second time in three months, something that hadn’t been seen in well over a decade.<p>However, despite the acceleration in the Fed’s monetary policy tightening schedule, the US dollar still fell, and has continued to do so since.<p>It’s a …

Business

Fed Could Allow Higher Inflation as Interest Rates Remain Low, Papers Suggest

U.S. interest rates are likely to stay historically low, which should prompt the Federal Reserve to rethink its approach to inflation. Those are the conclusions of two new research papers by teams of Fed economists published Thursday by the Brookings Institution.<p>Taken together, the two papers …

Inflation

What Are the Experts Saying about Mortgage Rates?

Mortgage interest rates have risen over the last few months and projections are that they will continue their upswing throughout 2017. What impact …

Budgeting

BOJ members hose down speculation of bond yield hike

TOKYO/SHIZUOKA, Japan (Reuters) - Bank of Japan board member Yukitoshi Funo on Wednesday joined other policymakers in hosing down speculation of a near-term withdrawal of the central bank's massive monetary stimulus, saying it was premature to consider raising the BOJ's bond yield target.<p>While …

Central Banks

How Rising Interest Rates Will Affect Consumers and the Economy

Interest rates are on the rise. Last week, the Federal Reserve voted to raise rates by a quarter point.<p>It’s just the third time since the Great …

Federal Reserve

UBS charges customers to deposit euros

<b>Swiss bank UBS will start charging customers who deposit more than a million euros, as negative interest rates hit banks' profits.</b><p>The annual 0.6% charge will take affect from May.<p>UBS already imposes charges for large accounts held in Swiss francs by companies and some wealthy clients.<p>Banks' profits …

UK News

Low rates putting pressure on European banks – French central bank boss

Profitability is now the most important challenge facing the eurozone’s banks, France’s top central banker has said, in an acknowledgement of the …

Economics

Riksbank defends negative interest rates

Negative interest rates in Sweden have “had the intended effect” without significantly damaging the wider economy or financial markets, the Riksbank …

Central Banks

AUDJPY To Increase With Carry Trade

U.S. interest rates will outpace Japan.<p>Tapering by BoJ will take time.<p>AU economy to push forward with global expansion.<p>The carry trade has been mired …

Business

America's Sovereign Debt Problem Is Getting Worse

Higher short-term interest rates are in the process of blowing a hole in budget planning.<p>$10 trillion in maturing debt will be refinanced at ever …

Business

This 'Hidden' Bull Market Is Just Getting Started

(HENNY RAY ABRAMS/AFP/Getty Images)<p>Plenty of investors buy corporate bonds because they think they’re safe investments.<p>That makes sense. After all, you <i>do</i> get your principal back at maturity. But corporates still have plenty of risks—particularly now, with interest rates arcing higher.<p>That’s why I’m …

Stocks

The Staggering Cost of a Quarter-Point Interest-Rate Hike

In case you missed it, the Federal Reserve did something it's only done three times over the past decade on Wednesday -- it increased its federal funds target rate.<p>In a widely anticipated move by Wall Street economists, all but one of the Fed governors voted in favor of a 25-basis-point increase in …

Investing

The 3 Best Stocks to Profit From Low Interest Rates While They Last

These companies are benefiting from the current low interest rate environment.<p>Low interest rates won't be around forever. The timing is anyone's …

Investing

Why Inflation Is A Stock Investor's Friend, And How To Profit From It

<i>Time was that inflation was a fearsome beast. Now, we welcome it, provided that it is moderate, around the 2% level that the Federal Reserve thinks is needed to grease the economy’s gears. Investors should take heart that this seems to be happening. Wall Streeters call it the “reflation trade.”</i></i> …

S&P 500

Are Bonds Flashing A Warning Sign For Stocks?

<b>What Does Fear Look Like?</b><p>Typically, when markets move into a long-term risk-off phase, the conviction to own defensive-oriented bonds begins to …

Stocks

How Will the Fed Reduce its Balance Sheet?

As the Federal Reserve gradually begins tightening monetary policy, its next task is addressing the $4.5 trillion elephant in the room: its swollen …

Central Banks

This Fed Governor Just Nailed the Art of the Twitter Q&A

You'd be forgiven for thinking that Twitter and the arcane world of central banking don't mix. But this Federal Reserve Governor just proved it can …

Central Banks

Thinking of putting your RRSP contribution into GICs? Stop and read this first.

For anyone who can stomach a minimum of risk, GICs aren't a good option.

Personal Finance

Liquidity Squeeze? China’s Interbank Rates At 2014 High - Asia Stocks to Watch

By Shuli Ren<p>China’s 7-day repo fixing interest rate rose to 5.5% on Tuesday, the highest level since late 2014 and a sharp rise from the previous …

China

Higher inflation's hidden, but hazardous, boost to Britain's economic recovery plans

Inflation in the UK has surged, with the consumer price index jumping to 2.3% in the year to February – up from 1.8% in January. This is far better …

Economics

Fed Hike Is A Costly One For Credit Card Borrowers (CITI, BOA)

The Federal Reserve’s recent interest rate hike is proving to be a costly one for credit card borrowers. (See also: Fed Increases Interest Rates At …

Personal Finance

UK Inflation Non-Core And Temporary - Thus Not An Influence Upon Interest Rates

There’s a flurry of worrying over the UK inflation rate which has popped up above 2% again. Will this mean that the Bank of England will raise interest rates again to curb said inflation and so on. The answer is probably not for what has popped up is the general inflation rate not the core rate. …

Opinion