Krutham’s Post

If banks can’t rely on statistics, they must build a margin of caution into their models, reducing lending and stifling economic growth, writes Stuart Theobald, CFA. Read more at https://lnkd.in/dUxM_D94

Big financial news! 📉 BSP is expected to cut rates this week, according to a recent survey. What could this mean for the economy? Find out here: https://lnkd.in/eZUPhsKR #BusinessNews #Economy #InterestRates #GLCND

Financial markets and commentators are swinging towards interest rate cuts happening before the end of this year and even as soon as next week's review. Infometrics Chief Executive Brad Olsen argues that the Reserve Bank needs to be held to account for misreading the economy and getting things so wrong at its hawkish statement in May, which suggested interest rates could rise further, and that no cuts would occur until September 2025. #infometrics #newzealand #nzrb #interestrates

I am not sure there would be an economist out there that would be expecting any change to the interest rates today, it is worth remembering that there will be an interest rate decision form the RBA Board today. In line with its new meeting schedule, the RBA board commenced its two-day meeting yesterday, with its decision to be announced at 2.30pm In a big change for 2024, the RBA board will only meet eight times a year, or roughly once every six weeks, rather than on the first Tuesday of every month, except in January, as it previously did. Whilst the big four are all predicting an interest rate cut at the end of the year there are those like Warren Hogan that have warned the next move could be to increase interest rates in the middle of year, if economic growth picks up. “We’ve only had one rate hike since July 2023, and we know that we’re going to get a big boost to disposable incomes, starting on July 1 this year with the tax cuts,” Mr Hogan said. “And, of course, what the national accounts show, along with other data, is the rest of the economy [outside the household sector] is doing fine.” In worrying news, Mr Hogan was found to be the most accurate RBA cash rate economic forecaster out of 29 economists ranked by The Australian Financial Review in 2023. The bumpy ride may not be over just yet... todayttps://https://lnkd.in/gM2P_chm

This should give you an idea of how much money has increasingly been pumped into the #useconomy since the 2008 #financialcrisis ! "....Therefore, the Federal Reserve’s response to these crises was to adopt expansionary monetary policies to stimulate employment and economic growth." "Expansionary monetary policies are only effective if commercial banks are willing to grant loans and potential borrowers are willing to take the risk. In fact, while central banks can enforce minimum reserve requirements for commercial banks, they cannot enforce a maximum amount. Therefore, expansionary monetary policies could increase the reserves of commercial banks but not the amount of money circulating in the economy. Furthermore, increasing the money supply tends to increase inflation, which destabilizes the economy and erodes purchasing power." Of course, the heads of big #banks love this (huge bonuses?) - https://lnkd.in/d7GRZAJX So, now you know what has been happening! #economics #fed #monetarypolicy #expansionstrategies #balancesheet

📌 Financial markets enjoyed another buoyant week, as the Bank of England hinted at interest rate cuts to come, US employment markets wavered, and global economic data delivered some upbeat surprises. Find out the latest market news in our Weekly Bulleting linked below #weeklyupdate #inflation #marketnews #interestrates #USemployment #bankofengland https://lnkd.in/eDRCsgww

BOE Base Rate: Reductions in 2024 - Projection for 2025 This week Andrew Bailey, Bank of England Governor, has hinted toward base rate movements that were 'a bit more aggressive', indicating that we're likely to see a more rapid movement in base rate position in the future. Investors are now assigning a 97% chance of a further base rate reduction by 0.25% in the next MPC meeting on the 7th of November. (https://lnkd.in/edrxmvKY) But what about the future? This has been more elusive with projections previously being that we may see 4% by the end of 2025 and 3.5% as the anticipated level that the base rate may settle at in 2026. Today, we see analysts being more confident of sharper reductions in 2025 leading to a base rate of 2.75% in 2025 based on positive economic data that is becoming more consistent in nature. (https://lnkd.in/eAHdebUR) As advisers, we have seen regular fixed rate reductions on a weekly basis since the original base rate cut in August. We're seeing more and more competitive rates becoming available which is great news in reporting increasing interest savings to existing clients and new clients on a regular basis. With lower rates we're likely to see more potential purchasers feeling sufficiently confident to enter the market. Save Interest. Protect Finances. Create Capital. www.open-ifa.com

🚨 November Economic Update: Interest Rate Cuts & Election Insights! 🚨 As we head into November, markets are anticipating that the Federal Open Market Committee (FOMC) will cut interest rates by 0.25% on November 7. This follows a previous cut in September, potentially bringing the target rate to between 4.5% and 4.75%. Key Takeaways: • Lower Rates Ahead: With inflation easing and a cooling job market, lower rates could make borrowing more affordable for businesses and consumers alike. • Jobs Report: The October jobs report, expected to release today, may show some weakness, supporting the case for further rate cuts. Industry Impacts: • Automotive: Lower financing rates could stimulate car sales as consumers feel more confident. • Manufacturing: Cheaper borrowing might encourage manufacturers to invest in new equipment and expand operations. • Real Estate: Reduced mortgage rates can boost homebuying activity, benefiting the real estate market. Upcoming Election: As we near the elections on November 5, the outcomes could greatly impact economic policy and business sentiment. With interest rate changes and election results coming up, November is shaping up to be a crucial month for the economy! How do you think these developments will impact your industry in the coming months? 📉🗳️💼

Curious about interest rate cuts and their impact? Check out this insightful read! 📉💰 #InterestRates #Finance #Economy Read more here : (https://lnkd.in/edx-5NCh)