Analysis: Interest Rates

ECB's Villeroy says low inflation means it must keep rates low

Currently low inflation means that the European Central Bank can and should keep interest rates low, ECB policymaker Francois Villeroy de Galhau said on Wednesday.

Short-term funding crunch pushes European companies into bonds

A slew of European corporate bond issues over the past week have brought some cheer to shell-shocked markets, but a key reason for the rush may be more concerning: A scant commercial paper market.

Exclusive: Japan to boost govt bond issuance by $149 billion to fund stimulus - sources

Japan will boost government bond issuance by $149 billion from July to fund a massive stimulus package aimed at combating the hit to the economy from the coronavirus pandemic, two government sources...

Norway to boost government bond issues to pay for coronavirus lending

Norway's central bank has increased its planned issuance of government bonds this year to between 70 billion and 85 billion Norwegian crowns from an original plan of 55 billion crowns, it said on...

Italy PM calls for European recovery bonds - report

Italian Prime Minister Giuseppe Conte has urged the European Union to launch a recovery bond to help fund the response to the coronavirus outbreak, saying failure to tackle the emergency would be a...

Canada's top lenders cut prime rates after central bank's surprise move

Canada's top lenders lowered their prime rates by 50 basis points on Friday, hours after the central bank unexpectedly cut its key interest rate to help the county weather the economic fallout of the...

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...

Cash handouts and bond buying: $10 trillion-plus deployed against virus

More than 300 basis points in combined interest rate cuts, a tenth of annual output in central bank stimulus and $5 trillion of new government spending and credit guarantees - authorities in the...

African Development Bank sells record $3 billion "Fight COVID-19" bond

The African Development Bank sold a record $3 billion debt issue on Thursday, joining the fold of multilateral and public lenders ramping up efforts to raise financing to help combat the fallout from...

India cuts rates as distress mounts across South Asia over coronavirus

India's central bank slashed interest rates in an emergency move on Friday to counter the economic fallout from the coronavirus pandemic after the federal government locked down the country in order...

Bank of England ready to buy more bonds if needed to help limit coronavirus impact

The Bank of England held off from taking fresh action to stop the coronavirus crisis from plunging Britain's economy into a long recession on Thursday, but said it was ready to ramp up its bond-buying...

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...

Japan swap spreads stay wide as GPIF eyes foray into foreign bonds

The cost of swapping yen into dollars remains elevated in part due to signs that large Japanese government pension funds are planning to increase purchases of overseas bonds as they rebalance their...

Australia central bank buys $3 billion government bonds in QE programme

The Reserve Bank of Australia bought A$3 billion in sovereign government bonds on Thursday, with analysts estimating the central bank could soak up nearly half of all new supply in the market. ...

Taking QE route, S.Africa's central bank starts buying bonds

South Africa's central bank on Wednesday launched a bond-buying programme, seeking to drum up demand in credit markets as the coronavirus epidemic weighs on the country's already ailing economy.

Thailand central bank warns economy will contract in 2020, but holds fire on rates

Thailand's central bank said on Wednesday it now expects Southeast Asia's second-largest economy to sharply contract this year as the coronavirus pandemic deals a severe blow to businesses and...

Australia central bank buys semi-government bonds as state revenues crunched by coronavirus

Australia's central bank stepped into the semi-government bond market for the first time since launching its quantitative easing programme to combat the coronavirus pandemic as state revenues...

In wait-and-see mode, Nigeria's central bank holds rates

Nigeria's central bank held its benchmark lending rate at 13.5% on Tuesday, as its governor said it would take time to assess measures already taken to support the economy in response to the...

Australia central bank pumps in liquidity, buys bonds as deep recession looms

Australia's central bank injected A$6.9 billion into the financial system on Tuesday and bought A$4 billion in bonds as economists predicted a spike in unemployment and the worst recession in the...