The US central bank still foresees another rate hike in December, three more next year, and one increase in 2020. — Photo rainbowradioonline.com WASHINGTON - With the US economy still strong, the Federal Reserve raised the benchmark interest rate on Wednesday for the third time this year but showed no indication it would be more aggressive in efforts to head off inflation. However, Fed Chairman Jerome Powell cautioned trade tensions remained a risk to the outlook, including the potential for rising prices, although he indicated it was too soon to tell what impact it this have on the economy. On the brighter side, Powell said he did not see any "troubling" vulnerabilities in financial markets, even with stocks near their historic highs in some cases. In a widely anticipated decision, the central bank boosted the lending rate to a range of 2 per cent to 2.25 per cent, a quarter-point increase in the target range. Shortly after the announcement, President Donald Trump once again … [Read more...] about US Fed raises benchmark interest rate amid strong economy
Interest rates
Fed raises US interest rates, sees at least three more years of growth
In a statement that marked the end of the era of “accommodative” monetary policy, Fed policymakers lifted the benchmark overnight lending rate by a quarter of a percentage point to a range of 2.00 percent to 2.25 percent. The U.S. central bank still foresees another rate hike in December, three more next year, and one increase in 2020. That would put the benchmark overnight lending rate at 3.4 percent, roughly half a percentage point above the Fed’s estimated “neutral” rate of interest, at which rates neither stimulate nor restrict the economy. That tight policy stance is projected to stay level through 2021, the timeframe of the Fed’s latest economic projections. “The thing that folks were watching for, which they went ahead and did, was remove the word ‘accommodative’ in regard to their monetary policy,” said Michael Arone, chief investment strategist at State Street Global Advisors. “It does seem to potentially … [Read more...] about Fed raises US interest rates, sees at least three more years of growth
Fed raises U.S. interest rates, sees at least three more years of growth
In a statement that marked the end of the era of “accommodative” monetary policy, Fed policymakers lifted the benchmark overnight lending rate by a quarter of a percentage point to a range of 2.00 percent to 2.25 percent. The U.S. central bank still foresees another rate hike in December, three more next year, and one increase in 2020. That would put the benchmark overnight lending rate at 3.4 percent, roughly half a percentage point above the Fed’s estimated “neutral” rate of interest, at which rates neither stimulate nor restrict the economy. That tight policy stance is projected to stay level through 2021, the timeframe of the Fed’s latest economic projections. “The thing that folks were watching for, which they went ahead and did, was remove the word ‘accommodative’ in regard to their monetary policy,” said Michael Arone, chief investment strategist at State Street Global Advisors. “It does seem to potentially … [Read more...] about Fed raises U.S. interest rates, sees at least three more years of growth
Brokerage sees higher interest rates in Vietnam in 2019
The Hanoitimes - In 2018, inflation is estimated at 4% year-on-year, the highest level since 2014. Due to external and internal risks, including tightening of monetary policies and trade tension in the global economy and higher inflation of the local economy, interest rates in Vietnam are expected to rise in 2019, according to Viet Dragon Securities Corporation (VDSC). On the front of external risks, tightening of monetary policies is directly leading to rising global borrowing costs after a long period of favorable global financing conditions, stated VDSC in its latest report. In the US, there are likely two more interest rate hikes in the latter part of 2018 as inflation is close to the FED target. The FED's objective is 3.5% for the benchmark rate by the end of 2019. The European Central Bank (ECB) will close its asset purchase program by 2018 while the Bank of Japan (BOJ) is likely to reset its inflation and monetary policy targets. In addition to the US Dollar … [Read more...] about Brokerage sees higher interest rates in Vietnam in 2019
Banks increase interest rates for year-end
Several banks have raised deposit rates by 0.1 to 1.4%. illustrative image Viet Capital Bank has had the highest interest rates of 8.6% for deposits of over two years. Eximbank followed after raising interest rates to 8% for over two years. Sacombank increased the 13-month term's interest rate from 7.6% to 7.8% and from 7.1% to 7.2% for 18-month term for accounts with over VND100bn (USD4.2m). Techcombank also increased interest rates by 0.1 to 0.2% for short-term accounts and by 0.2-0.4% for long-term accounts. Many other banks including TPBank, VPBank, VIB Bank and SEABank also raised the interest rates. Some mid and long-term accounts have interest rates raised by 1-1.4%. Vietcombank, Vietinbank, Agribank and BIDV also started raising interest rates. The 12-month term's rate at Vietcombank increased to 6.5% and the BIDV increased the rate to 4.3% for one and two-month terms. BIDV 13-month term's rate is now 6.8%. Several banks also launched promotion programmes to attract … [Read more...] about Banks increase interest rates for year-end