US Mortgage Applications Fall -10.6% as Interest Rates Rise Higher Again

The Mortgage Bankers Association showed mortgage applications in the US for the week ending 16 February 2024 slumped 10.6%. The 30-year fixed rate increased to 7.06% from 6.87% the week before. The sharp rise in the average home loan rate saw both purchase and refinancing activity have a marked decline, as sentiment, and the ability to get a loan has deteriorated as it becomes progressively worse after the opening two months of the year. The Refinance Index slumped to 427.0 … Continue reading “US Mortgage Applications Fall -10.6% as Interest Rates Rise Higher Again”

ECB Leaves Key Interest Rates Unchanged, Short of Markets Hawkish Expectations

ECB kept key rates unchanged in its January monetary policy decision at 4.50%, multi-year highs for the third consecutive meeting, with the closely watched deposit facility rate 4.00%, in line with markets thoughts. The ECB broke their record streak of rate hikes with the pause and markets are also convinced that they aren’t going to add any more considering the state of the economy at the moment. The ECB’s Lagarde did not push back, failing to make use of Middle … Continue reading “ECB Leaves Key Interest Rates Unchanged, Short of Markets Hawkish Expectations”

Norway’s Norges Bank Keeps Rates at 4.50%, Guides ‘On Hold for Some Time’

Norway’s central bank, the Norges Bank’s Monetary Policy and Financial Stability Committee kept rates at 4.50% at its January Meeting. The bank has borrowing costs that are the highest level since December 2008 as it sought to combat persistent inflation. Norges Bank guided it would stay on hold for “some time.” It dropped reference to how “the policy rate will lie around 4.5% until autumn 2024” which could be meaningful, or it could just be a reflection of the fact … Continue reading “Norway’s Norges Bank Keeps Rates at 4.50%, Guides ‘On Hold for Some Time’”

Bank Indonesia Keeps Rates Unchanged at Highest Level Since 2009 to Support Rupiah

Bank Indonesia kept its benchmark interest rate unchanged at 6.00% as universally expected at its December meeting. Governor Warjiyo said, “we will not rush” to ease next year and that they may only have comfort in addressing risks to the stability of the rupiah by “the second half of 2024.” There was little overall effect on the currency or rates. He added the decision was “consistent with the focus of pro-stability monetary policy, to strengthen the stability of the rupiah … Continue reading “Bank Indonesia Keeps Rates Unchanged at Highest Level Since 2009 to Support Rupiah”

Hungary Cut Key Interest Rate by 75 bps to 10.75% as Inflation Eases

Magyar Nemzeti Bank (MNB), the central bank of Hungary cut its key base rate by 75 bps to 10.75% during its December 2023 meeting, in line with market consensus. The rates on collateralized loan rates and overnight deposits were also reduced by the same margin, reaching 11.75% and 9.75%, respectively. Hungarian inflation continues to ease. The consumer price index fell significantly by 2.0%, while core inflation declined by 1.8% from the previous month., as inflation continues to ease. The central … Continue reading “Hungary Cut Key Interest Rate by 75 bps to 10.75% as Inflation Eases”

ECB Leaves Key Interest Rates Unchanged, Announce Early End to PEPP

ECB kept key rates unchanged in its December monetary policy decision at 4.50% at multi-year highs for the second consecutive meeting, with the closely watched deposit facility rate to 4.00%, in line with markets thoughts. The ECB broke their record streak of rate hikes the prior month and markets are also convinced that they aren’t going to add any more considering the state of the economy at the moment. The ECB signaled an early conclusion to its last remaining bond … Continue reading “ECB Leaves Key Interest Rates Unchanged, Announce Early End to PEPP”

Bank of England Maintains Interest Rates at 5.25%, Inflation Not Tamed Quickly Enough

The Bank of England MPC at its December meeting Thursday kept the key bank rate at 5.25% as expected in a 6–3 split vote. The bank left guidance on time spent at the peak unchanged, effectively leaving the door left equally open to another hike if needed. In that outlook recent jobs and inflation data were largely discounted by the BoE. There isa clear hesitation on whether declaring inflation being tamed quickly enough that they can soften language on the … Continue reading “Bank of England Maintains Interest Rates at 5.25%, Inflation Not Tamed Quickly Enough”

Norway’s Norges Bank Suprises by Hiking Rates Another 25bps to 4.50%

Norway’s central bank, the Norges Bank’s Monetary Policy and Financial Stability Committee in a surprise decision raised rates by 25bps to 4.50% at its December Meeting. The bank has lifted to borrowing costs that are the highest level since December 2008 as it sought to combat persistent inflation. Governor Ida Wolden Bache said “The forecast indicates that the policy rate will continue to lie around 4.5% until autumn 2024 before gradually moving down”. The move is in contrast to yesterday’s … Continue reading “Norway’s Norges Bank Suprises by Hiking Rates Another 25bps to 4.50%”

Bank of England Maintains Interest Rates at 5.25%, Emphasis on Cuts a Long Way Off

The Bank of England MPC at its November meeting Thursday kept the key bank rate at 5.25% as expected in a 6–3 split vote, and respectively lower and higher GDP growth and inflation forecasts. Changes to the key sections of the statement were minor. The only exception the BoE noting that their new forecasts suggest “policy is likely to need to be restrictive for an extended period of time.” This is supported by the BoE’s projections that see inflation only … Continue reading “Bank of England Maintains Interest Rates at 5.25%, Emphasis on Cuts a Long Way Off”

Norway’s Norges Bank Holds at 4.25%, Guides Another 25bps in December with a Caveat

Norway’s central bank, the Norges Bank’s Monetary Policy and Financial Stability Committee unanimously held the policy benchmark interest rate at 4.25% and guided that another hike was likely in December, repeating what it said during its September meeting, bringing borrowing costs to the highest level since December 2008. However, this time they added with the caveat that if they become “more assured that underlying inflation is on the decline, the policy rate may be kept on hold.” Market pricing continues to … Continue reading “Norway’s Norges Bank Holds at 4.25%, Guides Another 25bps in December with a Caveat”