Watch more in iWantv or TFC.tv MANILA -- Market competition, not the Bangko Sentral ng Pilipinas' policy tightening alone, will determine interest rates on consumer loans, Governor Nestor Espenilla said. The BSP on Wednesday raised the overnight borrowing rate, which banks use as a benchmark to price their loans, by 25 basis points, bringing the total increase this year to 50 basis points. "It depends on the market conditions. It depends on the competitive environment. There are many factors to consider," Espenilla said. "Every market has its own characteristic. Maybe some will be quick to reflect the increased interest rates in their lending rates. Some may probably decide not to reflect it for competitive reasons," he said. Interest rates are rising: What does this mean for your loans? Espenilla: BSP 'ready' to adjust policy 'as necessary' The Bangko Sentral may raise the benchmark rate for a third time this year as consumer prices continue to rise, and with possible second-round … [Read more...] about News Will BSP rate hike drive up interest rates on consumer loans?
When will bank interest rates rise
caption Fed Chairman Jerome Powell source Mark Wilson/Getty; Samantha Lee/Business Insider The Federal Reserve on Wednesday raised its benchmark interest rate for the sixth time since late-2015. The Fed adjusts the interest rates that banks charge to borrow from one another, which is eventually passed on to consumers. Banks give out money all the time – for a fee. When we borrow and then pay back with interest, it’s how banks make money. The cost of borrowing, known as the interest rate, can make a big difference in which credit card you choose or whether you get one at all. But if your bank wants to make it more expensive to borrow, it’s not as simple as just slapping on a new rate, as a grocer would with milk. It’s something controlled higher up, by the Federal Reserve, America’s central bank. Why does the Fed care about interest rates? In 1977, Congress gave the Fed two main tasks: … [Read more...] about The Fed just raised interest rates — here’s how it happens and why it matters
By Tess Kalinowski Real Estate Reporter Thu., May 10, 2018 First-time home buyers already struggling with more stringent mortgage rules have been dealt another blow by an increase this week in the Bank of Canada’s five-year mortgage rate. The move is also one more reason why the Toronto region’s soft spring real estate market could linger longer, according to some. On Wednesday the Bank of Canada followed the country’s big banks and announced it was raising its 5.14 per cent benchmark mortgage rate to 5.34 per cent. The central bank rate is different from the rates that banks offer consumers, but it’s used to assess mortgage applications. Since Jan. 1, home buyers with a 20 per cent downpayment have had to qualify at the central bank’s five-year rate or at 2 percentage points higher than the mortgage rate being offered by their bank. Article Continued Below That alone has diminished buying power by 16.5 per cent, according … [Read more...] about Higher interest rates add to home buyer struggles
US Federal ReserveJerome Powell Five big themes likely to dominate thinking of investors and traders in the coming week and the stories related to them By Reuters March 19, 2018 12:44 PM (UTC+8) Share Tweet Linkedin Print Email Share 0 Comment 0 1. Fed A-head The US Federal Reserve’s first meeting with new head Jerome Powell at the helm takes place on Tuesday and Wednesday and an interest rate rise – this year’s first – is seen as a done deal. Against the backdrop of brewing inflationary pressures, mortgage rates and Treasury yields have been rising and risk assets including equities and junk debt prices have been exhibiting signs of stress. The dailyReport Must-reads from across Asia - directly to your inbox World investors will be paying close attention to the wording of the Fed statement for clues on whether Powell and co think conditions are now strong enough to hike rates beyond the three the financial markets have been forecasting. Oh, … [Read more...] about US Federal Reserve rate rise expected under Powell
By Theophilos Argitis Bloomberg Tues., March 6, 2018 Bank of Canada Governor Stephen Poloz’s preoccupation with uncertainty probably means a longer pause on interest rates, in a world of fraying trade alliances and volatile markets. The central banker is expected to leave his benchmark borrowing cost unchanged at 1.25 per cent at a rate decision Wednesday at 10 a.m., according to all 21 economists surveyed by Bloomberg News, with forward contracts pricing in just a 13 per cent chance of a hike. Investors have been paring back the odds of rate hikes in recent weeks on the back of a run of soft economic data, global market turmoil and growing geopolitical concerns that are expected to heighten Poloz’s already-elevated levels of caution with tightening monetary policy further. Read more: BlackRock predicts Bank of Canada will increase interest rates only once more in 2018 Article Continued Below What to expect from rising interest rates Bank … [Read more...] about Bank of Canada expected to maintain interest rate amid market, trade uncertainty