Category: rates

ECB Set to Raise Rates Again in May, Policymakers Say

VILNIUS/PRAGUE—The European Central Bank is likely to raise interest rates again in May after an already signaled hike in March, two policymakers said on Friday, with one arguing that the peak or “terminal” rate is at least starting to appear on the horizon. The ECB raised rates by a half a percentage point to 2.5…


Fed Needs Mortgage-Backed Securities Exit Plan ‘Earlier Than Later,’ Kansas City Fed President Says

WASHINGTON—Kansas City Federal Reserve President Esther George has urged her colleagues to come to terms “earlier than later” on a plan for the U.S. central bank to exit the mortgage-backed securities (MBS) market and be more explicit on how bond purchases will figure into future monetary policy. “You can’t just wake up one day and…


Fed Wants ‘Flexibility’ on Rates as Inflation Remains Key Focus, Minutes Show

WASHINGTON—All officials at the Federal Reserve’s Dec. 13–14 policy meeting agreed the U.S. central bank should slow the pace of its aggressive interest rate increases, allowing them to continue increasing the cost of credit to control inflation but in a gradual way meant to limit the risks to economic growth. The minutes of the meeting,…


Average Mortgage Rates Rise After 6 Weeks of Declines

WASHINGTON—The average long-term U.S. mortgage rate rose this week after falling for six straight weeks, adding to the challenges potential homebuyers face amid higher home prices and a limited supply of available houses. Mortgage buyer Freddie Mac reported Thursday that the average on the benchmark 30-year rate increased to 6.42 percent from 6.27 percent last…


Australia Central Bank Raises Rates to 10-year High, Says More Needed

SYDNEY—Australia’s central bank on Tuesday raised interest rates to a 10-year high and stuck with its projection that more hikes are needed to cool inflation, a stance taken as slightly hawkish by markets that were looking for signs of a pause in the near term. Wrapping up its last policy meeting this year, the Reserve…


Credit Card, Personal Loan Balances Hit Record Highs Amid Soaring Inflation, Rising Rates

As consumers grapple with surging inflation and rising interest rates, more Americans are taking on extra debt to mitigate household financial pressures, a new report found. According to TransUnion’s Q3 2022 Quarterly Credit Industry Insights Report (CIIR), credit card balances advanced 19 percent year over year in the third quarter, to an all-time high of…


ECB Must Keep Raising Rates Even If Recession Risks Rise, Lagarde Says

FRANKFURT—The European Central Bank must keep raising interest rates to fight off inflation, even if the probability of a eurozone recession has increased, ECB President Christine Lagarde said in an interview published on Tuesday. “Our mandate is price stability and we have to deliver on that using all the tools we have available,” Lagarde told…


UBS Plans More Share Buybacks as Wealth Management Shines

ZURICH—UBS struck a confident tone on Tuesday, reaffirming key financial targets and pledging more share buybacks next year, buoyed by higher interest rates and strong wealth management inflows. The world’s biggest wealth manager reported a smaller-than-expected 24 percent slide in third-quarter net profit, with lower costs and rising interest income helping to mitigate the impact…


Bank of America Beats Profit Estimates as Interest Rates Climb

Bank of America Corp. on Monday reported a smaller-than-expected 9 percent drop in quarterly profit, as its interest income was bolstered by rising interest rates that offset a slump in investment banking. The U.S. Federal Reserve’s aggressive move to tighten monetary policy this year to tame inflation has boosted the amount that banks can earn…


Senator Warren Worries That Fed Will Tip US Economy Into Recession

WASHINGTON—Sen. Elizabeth Warren (D-Mass.) said on Sunday that she was very worried that the Federal Reserve was going to tip the nation’s economy into recession and that interest rate hikes would put people out of work. “Do you know what’s worse than high prices and a strong economy? It’s high prices and millions of people…