Analysis: Interest Rates

Canada bolsters Main Street with wage subsidy amid coronavirus outbreak

Canada said on Friday it will cover 75% of wages for small businesses and the central bank cut its key interest rate to the lowest level in a decade, as officials sought to limit layoffs and bolster...

Exclusive: ECB doesn't plan to use crisis-era OMT bond scheme against coronavirus - sources

The European Central Bank has no plans to deploy its OMT emergency bond purchase scheme and sees it as an inappropriate tool to fight the coronavirus crisis, two sources familiar with the bank's...

Bank of Canada can buy corporate, municipal bonds if necessary

The Bank of Canada has said that if necessary it can buy corporate and municipal bonds to bolster liquidity in the credit markets as the new coronavirus puts the brakes on the global economy.

Markets rebound as policymakers further boost liquidity

European and American stocks rebounded on Thursday, halting further declines, in a sign further steps to boost liquidity by the U.S. Federal Reserve and other central banks has tentatively calmed...

Canadian dollar tumbles to four-year low as pressure rises on BoC to cut rates further

The Canadian dollar weakened to a four-year low against its U.S. counterpart on Tuesday as growing panic about a coronavirus-induced economic slump boosted the greenback and weak factory data added to...

Surging borrowing costs, vanishing buyers: more pain ahead for European junk bonds

Borrowing costs for junk-rated European companies have nearly tripled in less than a month, and with the market for new debt issuance shuttered, there could be a lot more pain in store for firms...

Near-zero U.S. rates may not sink the dollar

When the U.S. Federal Reserve cut interest rates to near zero on Sunday, the dollar fell, since the move blew away the yield on owning dollars and with it much of their attraction.

Bank of Canada slashes rates again to provide 'bridge across the trouble'

The Bank of Canada slashed its key interest rate for the second time in nine days on Friday to provide a bridge across the trouble as authorities seek to stave off a potential recession amid the...

ECB approves fresh stimulus for reeling economy but keeps rates steady

The European Central Bank approved fresh stimulus measures on Thursday to help the euro zone economy cope with the growing cost of the coronavirus epidemic, but kept interest rates unchanged in a move...

Britain fires with both barrels - emergency rate cut and budget boost

The Bank of England slashed interest rates by half a percentage point on Wednesday and announced support for bank lending just hours before the unveiling of a budget splurge designed to stave off a...

Traders bet U.S. Fed will slash interest rates in coming months

Futures traders are betting the Federal Reserve will slash U.S. interest rates in coming months to blunt damage to the world's largest economy, as governments and companies move to control the spread...

Bank of Canada takes cue from Fed and others, slashes rates over coronavirus fears

The Bank of Canada, taking its cue from other central banks, slashed a key interest rate by the most in more than a decade on Wednesday to help tackle a coronavirus outbreak and said it would cut...

Trump presses U.S. Federal Reserve to cut rates

U.S. President Donald Trump on Monday reiterated his call for the U.S. central bank to lower interest rates, tweeting that the Federal Reserve has been slow to act and should be more aggressive. ...

Fed seen cutting rates amid virus threat, low inflation

The Federal Reserve may need to move aggressively to cut borrowing costs to cushion the economy from the effects of the rapid spread of the new coronavirus, which sent global stocks tumbling this...

Markets bet Fed is pushed to cut rates in coronavirus response

Financial markets on Monday ratcheted up bets the U.S. Federal Reserve will be pressed to cut interest rates to cushion a feared hit to economic growth from the spread of the coronavirus, although one...

ECB negative rates not harmful, but inflation rise to stay elusive - Reuters poll

The European Central Bank's negative interest rate policy is not harming the euro zone economy but will not succeed in bringing inflation up to the central bank's target, a Reuters poll of economists...

Swedish central bank set to keep rates steady on Feb. 12, and through 2021: Reuters Poll

Sweden's central bank is expected to keep its benchmark interest rate at zero at a policy meeting next week and is not expected to alter its stance for the foreseeable future, a Reuters poll showed on...

Sensing a pick-up, BoE keeps rates steady as Carney bows out

The Bank of England kept interest rates steady at Governor Mark Carney's final policy meeting as it saw signs of a post-election pick-up in growth which weakened the case for immediate action to help...

Fed keeps rates steady, to tailor Treasury bill purchases later this year

The Federal Reserve held interest rates steady on Wednesday at its first policy meeting of the year, with the head of the U.S. central bank pointing to continued moderate economic growth and a strong...