interest rate cut

The Bank of Canada has paused its interest rate cuts at 2.75 percent, ending a series of seven consecutive reductions. This decision is influenced by escalating global trade tensions, particularly those involving the US. Heightened uncertainty surrounding tariffs and trade policies has clouded the economic outlook, prompting a cautious approach.

Indian stock markets experienced a third consecutive day of gains, with the Sensex climbing 0.4% and the Nifty rising 0.5%. Investor confidence was bolstered by positive local factors, including expectations of a strong monsoon and potential interest rate cuts. Bank stocks led the rally, fueled by a drop in retail inflation to a five-year low, overshadowing global trade war concerns.

Following the RBI's rate cut, SBI has reduced its lending rates by 25 basis points, effective April 15, 2025, to boost economic growth. The RLLR is now 8.25%, and EBLR is 8.65%. Deposit rates have also been trimmed.

Following the RBI's rate cut, SBI has reduced its deposit rates by 10 basis points across select tenors, while keeping MCLR-linked lending rates unchanged. The EBLR, linked to the repo rate, has been reduced by 25 basis points, lowering home and personal loan interest rates. Other banks are expected to follow suit, with HDFC Bank already cutting savings account rates.

India's retail inflation hit a 5-year low of 3.3% in March, driven by significantly lower food prices. This development is expected to prompt the RBI to cut interest rates to bolster growth amid global economic uncertainties. Experts anticipate retail inflation to remain stable, although geopolitical tensions and weather events require monitoring.

Banking stocks rallied, leading market gains, fueled by anticipated interest rate cuts and positive investor sentiment. IndusInd Bank led the surge, followed by other private and public sector lenders. SBI's lending rate cut and deposit rate reductions across the sector are expected to boost loan demand and credit offtake.

The Reserve Bank of India (RBI) has further reduced the repo rate to 6% following the first Monetary Policy Committee meeting of FY26. This second consecutive rate cut aims to control inflation, encourage borrowing, and manage liquidity amid global economic uncertainties. Consequently, loan EMIs could decrease, while fixed deposit returns might also see a reduction.

Economists predict the RBI will lower interest rates by 25 basis points during its three-day monetary policy meeting. Falling inflation, easing growth, and lower crude oil prices are creating room for this move. Additionally, a shift towards an 'accommodative' policy stance is expected.

US stocks displayed a mixed performance as tech and growth stocks saw a cautious return, while healthcare sector weakness impacted the Dow. Global markets reacted to potential ECB rate cuts and escalating tensions between President Trump and the Federal Reserve. Asian markets closed higher, contrasting with declines in European indices amid ongoing trade and monetary policy uncertainties.

Federal Reserve Chair Jerome Powell announced a hold on interest rate changes, awaiting clarity on President Trump's economic policies. Uncertainty surrounds immigration, tax policy, regulation, and trade tariffs. While tariffs are expected to cause short-lived inflation and slower growth, opinions diverge among Fed officials. Some, like Waller, downplay long-term tariff impacts, while others prioritize inflation control.

The Reserve Bank of India (RBI) is expected to cut key interest rates by up to 25 basis points to stimulate growth amidst global challenges. The move is supported by stable inflation and is anticipated to benefit the housing and real estate sectors. The official announcement is scheduled for April 9 at the 54th MPC meeting.

RBI has given loan borrowers reason to cheer with two back-to-back repo rate cuts in this calendar year. This is likely to translate into lower EMIs in the coming months. We explain the math:

ICICI Bank announced a dividend of Rs 11 per share following a strong financial performance in the fourth quarter. The bank's net profit rose significantly, driven by increased lending and healthy net interest income. While margins may face pressure due to anticipated rate cuts, the bank plans to add 400 new branches.

The White House is set to begin interviewing candidates for the next Federal Reserve Chair this autumn, as Jerome Powell's term concludes in May 2026. Treasury Secretary Scott Bessent confirmed the timeline amidst President Trump's repeated calls for interest rate cuts. While Bessent affirmed the Fed's independence and dismissed immediate concerns, he suggested a review of its regulatory role.