Mortgage Refinance Rates Jump 15% with Mortgage Interest Rates at Four Month Low

The pickup in mortgage applications in the US continued last week, rising jumped 7% in the week ended January 20th, 2023, following a 27.9% surge the previous week, data from the Mortgage Bankers Association showed. The move followed the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) down another 3bps to 6.2%, a fresh four-month low. The sharpest gains were in applications to refinance a home loan, up 15%, compared with the previous … Continue reading “Mortgage Refinance Rates Jump 15% with Mortgage Interest Rates at Four Month Low”

Norway Holds Interest Rate at 2.75 percent, Signaled More Hikes Ahead

Norway’s central bank, the Norges Bank’s Monetary Policy and Financial Stability Committee unanimously kept the policy benchmark interest rate at 2.75% in its January 2022 meeting, in line with market expectations, and signaled a further rate hike in the upcoming meeting.  The Committee noted that the latest inflation readings were well above the central bank’s target of 2%. said the policy rate will need to be increased somewhat further to bring inflation in line. The bank had five consecutive hikes by December, … Continue reading “Norway Holds Interest Rate at 2.75 percent, Signaled More Hikes Ahead”

Bank Indonesia Raised Rates Another 25 basis points to Highest Level Since 2009

Bank Indonesia increased interest rates by 25 bps during the first meeting of 2023, a sixth consecutive hike, on Thursday as it sought to tame inflation and strengthen the rupiah exchange rate. The benchmark 7-day reverse repurchase rate now stands at 5.75%, the deposit facility at 5.00% and the lending facility at 6.50%, their highest level since 2009 and in line with market forecasts. So far since August last year the central bank has lifted rates by 225bps. Indonesia’s annual inflation rate … Continue reading “Bank Indonesia Raised Rates Another 25 basis points to Highest Level Since 2009”

Bank Indonesia Raised Rates by 25 basis points to Highest Level Since 2009

Bank Indonesia increased interest rates by 25 bps during the last meeting of 2022, a fifth consecutive hike, on Thursday as it sought to tame inflation and strengthen the rupiah exchange rate. The benchmark 7-day reverse repurchase rate now stands at 5.5%, the deposit facility at 4.75% and the lending facility at 6.25%, their highest level since 2009 and in line with market forecasts. So far in 2022, the central bank has lifted rates by 200bps. Indonesia’s annual inflation rate fell to … Continue reading “Bank Indonesia Raised Rates by 25 basis points to Highest Level Since 2009”

Banco de México Raises Rates by 50 bps to Record High 10.50%, Hints at More Hikes

The Mexican Central Bank, Banco de México raised interest rates by 50 basis points to 10.50% at its December 2022 meeting, as expected. It was the 13th consecutive rate hike, adding to the 650bps of rate increases since the start of the bank’s tightening cycle in June. The Bank signaled that future decisions will be dependent on up-to-date economic data available. with the bank saying headline and core inflation forecasts were revised upwards. Five of the six board members voted in … Continue reading “Banco de México Raises Rates by 50 bps to Record High 10.50%, Hints at More Hikes”

ECB Raises Rates Another 50 bps as Expected, Forecasts Higher Inflation

ECB raised key rates by 50 bps in its December monetary policy decision following a 75-bps rate hike in October, and matching expectations from most analysts. The deposit facility rate is now 2%, the refinancing rate 2.5% and the marginal lending to 2.75%, a level not seen in fourteen years. Policymakers also said expects to raise interest rates further, to ensure the timely return of 2% inflation target. Inflation forecasts were revised higher, with average inflation seen reaching 8.4% in 2022 … Continue reading “ECB Raises Rates Another 50 bps as Expected, Forecasts Higher Inflation”

Bank of England Raises Interest Rates 50bps to 3.5%, Projects Inflation Likely Peaked

The Bank of England MPC at its December meeting Thursday raised the key bank rate by 50 bps from 3.00% to 3.50% as expected. BoE’s benchmark rate puts the cost of borrowing at the highest level since late-2008. The vote was 6-3 (However Tenreyro, Dhingra voted to keep rates unchanged at 3%, Mann voted to raise rates by 75 bps). The BoE’s projections suggested CPI inflation has reached its peak, and it is expected to remain “very high” in coming … Continue reading “Bank of England Raises Interest Rates 50bps to 3.5%, Projects Inflation Likely Peaked”

Taiwan Raised Interest Rate by 1.75 percent, Highest Since 2015

Taiwan’s central bank, Central Bank of the Republic of China (Taiwan) unanimously raised the policy benchmark discount rate to 1.75% from 1.625%, in line with market forecasts and pushing borrowing costs to the highest since 2015 at its December meeting. The central bank Governor said if it’s certain that the inflation rate is below 2%, the bank will stop raising interest rates, although there is still a lot of uncertainty. Committee noted that the latest inflation reading show inflation declined … Continue reading “Taiwan Raised Interest Rate by 1.75 percent, Highest Since 2015”

Norway Raised Interest Rate by 25 bps to 2.75 percent, Highest Since 2009

Norway’s central bank, the Norges Bank’s Monetary Policy and Financial Stability Committee unanimously raised the policy benchmark interest rate by 25bps to 2.75% in its December 2022 meeting, in line with market expectations, and signaled a further rate hike in the upcoming meeting.  The bank has had five consecutive hikes since July, equaling the sharpest hike since 2002 and lifting the key rate to levels not seen since 2009, as the Committee noted that the latest inflation readings were well … Continue reading “Norway Raised Interest Rate by 25 bps to 2.75 percent, Highest Since 2009”

Philippines Central Bank Raised Rates by 50 basis points to 5.50% with Inflation at 14 Year Highs

The Monetary Board of the Bangko Sentral ng Pilipinas (BSP), Philippines central bank hiked by 50 basis points to 5.50% and follows a 75 basis-point increase at the last meeting. It was the seventh consecutive rate hike, pushing borrowing costs to a new high since early-2009. BSP joined the Federal Reserve and the Hong Kong’s monetary authority in raising its base rate to combat inflation. Later the same day, Taiwan’s central bank announced a 12.5-basis-point increase to 1.75%, The Philippine … Continue reading “Philippines Central Bank Raised Rates by 50 basis points to 5.50% with Inflation at 14 Year Highs”