A reduction in interest rates and a strong rebound in the agricultural sector also helped GDP growth reach 7.5 percent in Armenia, IMF said in its forecast on Regional Economic Outlook for the Caucasus and Central Asia. According to the forecast, growth in the region was stronger than expected in 2017, but will moderate going forward. The reports says some progress in enhancing regulation and supervision, improving bank resolution frameworks, and strengthening governance has been made in several countries, including Armenia and Georgia. “Armenia’s efforts to enact a new public-private partnership law aligned with international best practices and to strengthen the role of its Finance Ministry’s Fiscal Risks Assessment Division are positive steps,” the report says. Armenia News - NEWS.am ! This text available in Հայերեն and Русский … [Read more...] about IMF: Reduction in interest rates helped GDP growth reach 7.5 percent in Armenia
Interest rates
German central bank sees interest rates rising next year
Hawkish stance Bundesbank President Jens Weidmann, who is in line to replace ECB President Mario Draghi, also expects government bond buying to end in the next few months.. Published on March 27, 2018 1:15 pm Jens Weidmann, the president of Germany’s central bank, has been a vocal opponent of the European Central Bank keeping its main interest rate near zero because so many Germans have their life savings in interest-bearing bank accounts. On Monday, he forecast that interest rates would finally begin to rise in the middle of 2019. “The markets see a first interest rate increase around the middle of 2019, which is probably not entirely unrealistic,” said Mr. Weidmann, who is likely to be chosen as ECB president to succeed Italy’s Mario Draghi in 2019, in a speech in Vienna. The bank’s deposit rate is currently minus 0.4 percent. Last week, Mr. Weidmann expressed hope that Europe’s improving economic health would also allow the ECB to … [Read more...] about German central bank sees interest rates rising next year
Rising hiring expectations and increasing wage pressures set to put heat on Bank of England for an interest rate hike
Employers' near-term employment expectations have risen to a five-year high, according to new research, highlighting a growth in demand for workers and hinting at further tightening of the labour market. There are tentative signs that wage pressures are increasing, according to the latest Labour Market Outlook from the Chartered Institute of Personnel and Development (CIPD) and The Adecco Group, as mean average basic pay growth expectations have risen from 1.8 per cent to 2.1 per cent over the last quarter. This could act as a catalyst for the Bank of England's monetary policy committee to hike interest rates in June rather than the more widely anticipated August date, after it held off last week due to poor economic performance in the first quarter. Read more: The City reacts to sharp GDP growth slowdown: "All but ended any hopes for May rate rise" “Employer optimism about job prospects remains extremely positive, which suggests we should be cautious about putting too … [Read more...] about Rising hiring expectations and increasing wage pressures set to put heat on Bank of England for an interest rate hike
Yet another interest rate cut for Iceland
The Monetary Policy Committee (MPC) of the Central Bank of Iceland has decided to lower the Bank’s interest rates by 0.25 percentage points. The deposit rate (current account rate) is lowered to 3.25%, the maximum bid rate for 28-day certificates of deposit (CDs) to 4.0%, the seven-day collateralised lending rate to 4.25% and the overnight lending rate to 5.25%. Inflation continued to subside in December and January. The CPI rose 1.8% year-on-year in January, or 1.6% excluding consumption tax effects, significantly below the inflation target of 2½%. One-off factors added to the seasonal drop in January. Favourable exchange rate developments over the past year, declining inflation expectations, and the slack in the economy continue to contribute to low and stable inflation.According to the forecast published in Monetary Bulletin today, economic recovery will be somewhat stronger this year than was forecast in November. Output is forecast to grow by 2.8% in 2011 and by just … [Read more...] about Yet another interest rate cut for Iceland
Interest rates on hold for now, but your personal finances could still be impacted this year. Here’s how
Marc Sidwell 12 May 2018 • 7:40am Act before you need to. It’s cheaper that way. Those who steal a march on looming changes can reap the benefits. Waiting until events force you to react – along with the rest of the herd – is often expensive. That is still true, even though, as the Bank of England’s interest rate decision this week showed, acting early does bring its own risks. The decision of the Bank’s Monetary Policy Committee (MPC) to hold interest rates on Thursday was a squealing about-turn. After months of signals that, finally, rates were to begin to rise, the MPC kept Bank Rate at 0.5pc. Mark Carney, the Bank’s Governor, had to suffer the return of his old nickname: the “unreliable boyfriend”. Those tempted to distrust... To continue reading this article Start your free trial of Premium Access all Premium articles Subscriber-only events Cancel any time Free for 30 days then only … [Read more...] about Interest rates on hold for now, but your personal finances could still be impacted this year. Here’s how