Showing posts with the label interest rate

Impact of Rate Hikes in the Real Economy

 Impact of Rate Hikes in the Real Economy It is noteworthy that the rate of Inflation is increasing around the world after Covid-19 Pandemic. To control this inflation rate, most of the Developed and Emerging economy nations are increasing the Bank Interest rate. Let's see how the rising interest rates will play in the economy of Developed and Emerging economies and it's impact in the Equity(Stock) Market. Generally, the Higher interest rate pegs High cost of borrowing for the Investors and Customers. It also increase the cost of borrowing for consumption. It leads to the Reduction of Spending. On the business side, the higher interest rate affects the future revenue growth of the respective companies. So, finally it would impact the Stock price of a listed companies. On the other side, if there is a falling interest rate - an individual consumer gets loan at a cheaper interest rate. It also encourages the Spending that what we have seen in the Uncertainty times in the Real eco

No Interest rate Hike - US Fed Policy - Recession 2020

No Interest rate Hike - US Fed Policy - Recession 2020 The Economy of the Super Power United States is about USD 21 Plus Trillion. It is said to be 1.5 Times than China and about 7.5 times the GDP of India. Most Advanced and Emerging economies in the world are affected severely by the Covid-19. United States is the most affected nation by the Coronavirus Pandemic - The number of infected cases and death are high. As a result, the Lock down was happened in the March and April 2020 and then the corresponding economic decline in the Country are high. Most of the Developed nations have confirmed the economic downturn - Recession 2020. The US officially announced it's recession from the month of February in their country. Due to that, there is a consistent measures are being taken to stimulate the Economy. This was followed by a massive package of USD 2 Trillion on Economic Stimulus. They also provided like a direct benefit of USD 1000 per month per Head. It is also said that there will

India Interest Rate - One year Look 2019

India Interest Rate - One year Look 2019 The Country's economy has been slowdown for the past year and a half. The GDP growth has been also come down from 8 Percent (July 2018) to 4.5 Percent now. Inflation has been steadily rising for the past few months due to prices of Vegetable, Milk Products and Pulses. As per the Past data shown in the Trading Economics website, India's Inflation was 4.17 Percent in the period of July 2018 and now it is at 4.62 Percent. It was seen as low of 1.97 Percent in January 2019. The Inflation is likely to raise in the upcoming months. For the past one year, the Bank REPO rate seems pretty low. This favors for the Borrowers and at the same time, it won't favor for the Fixed Depositors. The Bank's REPO rate, which stood at 6.5 Percent in the second half of Last year. Now, it is showing at 5.15 Percent. Till date the Central Bank (RBI) has reduced the REPO rate by 135 Points in one year. It is noteworthy that the bank (REPO) rate was lowered

Interest rates for Small Savings Schemes from July 2019

Interest rates for Small Savings Schemes from July 2019 The Government of India has announced interest rates for Small Savings Schemes for the period of July - September 2019. It is noteworthy that the interest rates on Small savings have been reduced over the past few years. The interest rate for Small savings scheme has been lowered by 10 basis points in January - March and April - June Period. For the current period, the interest rate on Sr. Citizen's Five Years Plan has been reduced to 8.60 percent from 8.70 percent. The National Savings Certificate (NSC) were stood at 8 percent in the March - June Quarter, which is now 7.90 percent for the period of July - September. Sukanya Samriddhi now comes with an interest rate of 8.40 percent, earlier it was 8.50 percent. For the 5 years Monthly Income Scheme (MIS), the new interest rate will be 7.60 percent and for 5 years Term Deposit, it comes with 7.70 Percent. The said above interest rates for Small Savings Scheme will come into eff

Interest rates for Small Savings Schemes from April 2019

Interest rates for Small Savings Schemes from April 2019 The Ministry of Finance announcing its interest rates for Small Savings Scheme once in three months. If there is any change in the interest rate, they are applicable only for a period of three months. Recently, the Ministry of Finance said in its statement that there is no change in the rates for the period of April - June 2019, and the same interest rates in the last quarter will continue now. The Current interest rate changes were announced for the Period April to June, is for the first quarter of the Financial Year 2019-20 (Q1FY20). Last time, there is a slight change in the interest rates for the small savings Term Deposit Scheme. For the Quarter of January to March 2019, there is 7 percent rate for the one year term deposit. As it was seen earlier with 6.9 percent in the October - December 2018 period. For the 3 years Term Deposit scheme, the interest rate was seen as 7.20 percent in the Q3FY19 and then it was reduced in the

Employees PF Interest Rate history in India Since 1952

Employees PF Interest Rate history in India Since 1952 In a statement issued yesterday (21-02-2019) by the Employees Provident Fund Organization(EPFO) in India, it was increased the Provident Fund(PF) interest rate to 8.65 percent from 8.55 percent for the Financial year 2018-19. This is the first time, the interest rate has been hiked in the past five years. The Provident Fund rate was seen 8.75 percent in the Financial year 2014-15 and it has been increased by 5 basis points to 8.8 percent in the FY 2015-16. The lowest rate in the last five years were seen at 8.55 percent in the last fiscal year 2017-18. The Total Annual deposits of Provident fund was Rs. 1,31,000 Crore in the financial year 2017-18 and the estimate for the current Financial year is 1,46,000 Crore rupees. It has stated that there are nearly 6 Crore subscribers will get benefited by this updated 8.65 percent. The Board of EPFO has also discussed the issue of raising minimum pension under the Employee Pension Scheme(EP

Interest rates for Small Savings Schemes in India - January 2019

Interest rates for Small Savings Schemes in India - January 2019 In the recent years, the Bank Interest rates are at low in India. The Past year 2018 ended with the stock market was not excessive earnings and the investment in Gold has been appreciated a little. Inflation in India has been in the numbering of four percent and below in the past half year. The Consumer inflation in India were declined to 2.33 percent in the November of 2018. The RBI (Reserve Bank of India) had also  unchanged with its interest rates in the recent months. The interest rates for small savings schemes recently announced by the Government of India, which has seen as the same by the past announcements. The New Interest rates for Small Savings Schemes in India are effect from January 1 to March 31, 2019. The Basic Savings account rate were with the same rate of 4 Percent. This is applicable for Banks and Post Offices on Savings account are there is no maximum limit on this part of account. For the One year Te

Interest rate hike for Small savings scheme for Q3FY19

Interest rate hike for Small savings scheme for Q3FY19   The Last trading day of this week (21-09-2018), Nifty50 and Sensex tumbled down and finally settled with (-0.81 % Nifty) and (-0.75 % Sensex) respectively. Today afternoon the sensex went down above 1000 points ( 35,993) as compared with the previous close of (37,121) and Nifty50 also down from the high of 11,346 points to the day's low of 10,866 , but finally Nifty50 closed with 11143 points. DHFL (Deewan Housing) crashed and closed with 42 percent down on the panic news on Default rumours of DHFL bonds. The bond yield is also in the rising rates and presently the 10 year bond yield is trading above the 8 percent. Yesterday, the Government also announced the small savings interest rate for the period of October - December 2018. The upcoming Q3FY19 interest rates are published with a better rates as compared with the previous quarter (June - September). PPF (Public Provident Fund) and NSC (National Savings Certificate) inte