Analysis: Interest Rates

Bank of Canada governor says interest rates will probably stay low

By Kelsey Johnson Bank of Canada Governor Stephen Poloz said on Thursday that interest rates were probably going to stay low and that the damage done by the coronavirus outbreak might...

COVID-era junk bond deals begin to go sour

By Kate Duguid Companies hard-hit by the pandemic rushed to raise debt last month, encouraged by the Federal Reserve's intervention to support the credit market. But for some of the...

South Africa's rand retreats as investors await rates decision

South Africa's rand was weaker in early trade on Thursday, after rallying to a five-week higher in the previous session, ahead of a key policy meeting where the central bank is expected to cut rates...

Germans paid to borrow as negative rates reach consumers

By Francesco Canepa Germans are being shown the bright side of negative interest rates as some online lending platforms pay customers to borrow despite the steepest recession since World...

South Africa's central bank to cut rates again, resist QE pressure for now

By Mfuneko Toyana South Africa's central bank is expected to cut interest rates to a 50-year low on Thursday but resist for the moment political pressure to buy government bonds so the...

South Korea to create 10 trillion won SPV to stabilize corporate bond market

South Korea's finance minister on Wednesday said the government and the central bank will set up a 10 trillion won special purpose vehicle to directly purchase commercial paper. ...

Euro jumps on Franco-German proposal for EU fund, joint debt

By Saqib Iqbal Ahmed The euro jumped on Monday against the dollar and Swiss franc after Germany and France issued a call for a 500 billion-euro recovery fund for Europe and proposed to...

Bank of England, facing COVID slump, revives negative rates talk

By William Schomberg A chorus of comments from top officials at the Bank of England about negative interest rates has revived talk that the British central bank might resort to cutting...

Britain heading for sub-zero rates club, money markets bet

By Saikat Chatterjee and Dhara Ranasinghe Money markets ramped up expectations that the United Kingdom could cut interest rates below zero for the first time as policymakers debated...

China central bank should shun risky bond buying as economy improves - adviser

The People's Bank of China should avoid buying special treasury bonds as such a move could fuel inflation risks and asset bubbles and lead to depreciation of the yuan currency, central bank policy...

Dollar notches small weekly gain after weak U.S. data

By Kate Duguid The U.S. dollar rose on Friday to notch a 0.66% weekly gain as the threat of a second wave of coronavirus infections rattled investors as did a slew of bleak U.S. economic...

As euro zone recession deepens, ECB to scale up bond buying next month

By Richa Rebello The euro zone economy's worst recession on record will be even deeper than forecast less than a month ago, according to a Reuters poll of economists who said the...

Bank of Ghana holds key rate, surprises with bonds purchase

Ghana's central bank left its key interest rate unchanged at 14.5% on Friday and said it had concluded a $1 billion repo facility with the U.S. Federal Reserve to improve the country's foreign...

China's bond regulator warns Citic Securities, Industrial Bank over low fees

A bond market regulator in China warned Citic Securities and Industrial Bank on Friday against charging bond underwriting fees way below normal levels in the market, calling this improper competitive...

Negative rates unlikely tool for central banks combating pandemic - ex-BOJ official

By Leika Kihara and Takahiko Wada Adopting or deepening negative interest rates is an unlikely option for many central banks, including in Japan, particularly when they need the help of...

ECB won't let bond yields get out of control - Villeroy

The European Central Bank will prevent volatile market conditions from letting bond yields spiral out of control, ECB policymaker Francois Villeroy de Galhau said on Thursday. We will...

South African Reserve Bank to cut rates by another 50 basis points

By Vuyani Ndaba The South Africa Reserve Bank is expected to cut interest rates by 50 basis points on May 21 to a record low of 3.75% to ease the pain of the country's recession, as this...

China Southern Airlines plans to issue up to $2.25 billion in A-share convertible bonds

China Southern Airlines is planning to issue up to 16 billion yuan in A-share convertible bonds to fund purchases of aircraft, maintenance services and spare engines, and to boost cashflows, the...

Bank of England not considering taking rates below zero - Bailey

The Bank of England is not considering taking the very big step of pushing interest rates below zero, Governor Andrew Bailey said on Thursday although he declined to rule it out altogether. ...