| Fed keeps key interest rate steady
Wall Street turbulence, Main Street credit problems and a nationwide housing slump pose increasing risks to the economy, the Federal Reserve said Tuesday, even as it left interest rates unchanged. Although Federal Reserve Chairman Ben Bernanke and his central bank colleagues acknowledged challenges that have intensified since their last meeting in late June, they nonetheless expressed hope that the economy will safely make its way. The policymakers also stood by their belief that the biggest potential danger to the economy is that inflation won't recede as they anticipate. Against these economic crosscurrents, the Fed left an important interest rate at 5.25 percent on Tuesday. In turn, commercial banks' prime interest rate for certain credit cards, home equity lines of credit and other loans -- would stay at 8.25 percent.
Private banks hope to cut home loan rates
High liquidity and inflation remaining below 5 per cent for six weeks in a row have raised banks' hopes for a cut in home loan rates after the credit policy review on July 31. But it is unlikely to be broad-based cut with public sector banks preferring to remain away from slashing rates. Private banks, which effected severe hikes over the last few months, however, may slash them. The Reserve Bank of India (RBI), however, is not likely to signal reversal of upward trend in interest rates in the upcoming credit policy review on July 31, according to experts. The reversal in benchmark interest rates like reverse repo rate and repo rate could be seen only by the year-end, they say. “Public sector banks have been quite considerate of home loan borrowers. We did not hike rates twice when private banks did so.
Federal Reserve holds key interest rate steady: Policymakers cling to hope economy will overcome risks
Federal Reserve holds key interest rate steady: Policymakers cling to hope economy will overcome risks By JEANNINE AVERSA Associated Press NEW YORK --Federal Reserve holds key interest rate steady: Policymakers cling to hope economy will overcome risks Wall Street turbulence, Main Street credit problems and a nationwide housing slump pose increasing risks to the economy, the Federal Reserve said Tuesday, even as it left interest rates unchanged. Although Federal Reserve Chairman Ben Bernanke and his central bank colleagues acknowledged challenges that have intensified since their last meeting in late June, they nonetheless expressed hope that the economy will safely make its way. The policymakers also clung to their belief that the biggest potential danger to the economy is that inflation won't recede as they anticipate.
Bets seen on emergency Fed rate cut
Futures markets began betting Friday that the Federal Reserve will institute an emergency interest rate cut this month in the wake of the credit worries that have roiled U.S. markets in recent weeks. The latest reading suggested there is a 24 percent chance that the central bank will lower a key short-term interest rate in August. Markets were not betting on a rate cut in August immediately following the Federal Reserve's policy meeting on Tuesday. .
Interest rates unchanged in RBI's new credit policy
That should be good news for those paying back home loans in particular or is it? "I think the home loan and credit rates should not be affected. The RBI has done a fabulous balancing act," said CMD of Bank of Baroda Anil Khandelwal. The good news is on the interest rates front as the RBI has refrained from increasing interest rates two times in a row with the Bank rate remaining at 6 per cent, the repo rate at 7.75 per cent and the reverse repo rate untouched at 7 per cent. But the Cash Reserve Ratio (CRR) has been increased by 50 basis points to 7 per cent. .
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ST. PAUL, Minn.--(BUSINESS WIRE)--GE Money's Sales Finance unit and the Electric & Gas Industries Association (EGIA), a non-profit organization dedicated to advancing energy efficiency and renewable energy solutions, recently announced a new multi-year relationship to provide revolving and installment consumer financing of residential solar systems through EGIA's GEOSmart Sustainable Financing Solutions loan program. .
Taylor Wimpey Profit Beats Estimates; Raises Target (Update3)
July 31 (Bloomberg) -- Taylor Wimpey Plc, Britain's biggest homebuilder, posted a first-half profit that beat analyst estimates and raised its target for cost savings from the merger that created the company. The stock climbed as much as 9.7 percent. Taylor Wimpey, created July 3 by the merger of Taylor Woodrow Plc and George Wimpey Plc, predicted 100 million pounds ($203 million) in annual savings compared with an earlier goal of 70 million pounds. Pro-forma pretax profit at the London-based company totaled 259 million pounds in the first half. Taylor Wimpey, which builds a range of apartments and family homes in the U.K., Spain and North America, has cut about 5 percent its workforce, reduced building costs and improved supplier agreements to boost profitability.
HSBC First-Half Net Rises 25%; Loan Provisions Jump (Update8)
July 30 (Bloomberg) -- HSBC Holdings Plc, Europe's largest bank, said first-half profit rose 25 percent, beating analysts' estimates, as investment gains in China overcame rising costs from bad mortgage loans in the U.S. The shares advanced the most in three months after London- based HSBC said today that net income increased to $10.9 billion, or 94 cents a share, from $8.73 billion, or 77 cents, a year earlier. The median earnings estimate from nine analysts surveyed by Bloomberg was $9.34 billion. HSBC, which has offices in 82 countries, reported higher pretax earnings in Europe, Latin America and Asia, including $1 billion of gains from China. At the same time, provisions for bad loans, mostly to U.S. borrowers with patchy credit histories, climbed 63 percent to almost $6.4 billion.
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