Analysis: Interest Rates

EU eyes use of bailout fund to unlock unlimited ECB bond buying

The European Commission next week is likely to present a tool for the euro zone's ESM bailout fund to fight the effects of the coronavirus epidemic that could unlock unlimited ECB sovereign bond...

Bank of England ramps up bond-buying, cuts rates to near zero

The Bank of England promised 200 billion pounds of bond purchases and cut its key interest rate to 0.1% in a second emergency move in just over a week to try to mitigate the hit to Britain's 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...

BoE halts historic gilt slump with £200 billion cash promise

The Bank of England halted the sharpest slide in British government bonds since 1998 on Thursday after it cut its interest rate to a record low 0.1% and promised 200 billion pounds of asset...

Thai cenbank buys $1.4 billion of bonds to boost liquidity

Thailand's central bank bought another 45 billion baht of bonds on Thursday and is ready to continue to buy them to ensure sufficient liquidity and to reduce market volatility, a deputy governor...

'Whatever is necessary' - Australia dives into QE to save economy

Australia made a historic foray into quantitative easing on Thursday and said it would do whatever is necessary to ensure funding costs are low and credit is freely available as the coronavirus...

ECB to print 1 trillion euro this year to stem coronavirus rout

The European Central Bank launched 750 billion euro emergency bond purchase scheme in a bid to stop a pandemic-induced financial rout from shredding the euro zone's economy and raising fresh concerns...

Ready to do everything it takes, ECB steps up Italian bond buys

The European Central Bank is ready to do everything in its power to ease market turmoil, a top executive said on Wednesday, as the bank stepped up purchases of Italian bonds to stem the biggest...

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...

Philippines central bank to join drive to cut rates - Reuters poll

The Philippine central bank looks certain to slash interest rates at its meeting on Thursday to counter the economic impact of the coronavirus outbreak, and the only remaining question is how deep the...

South African cenbank: rates decision announcement scheduled for Thursday

The South African Reserve Bank said on Monday that it would announce its latest interest rate decision as scheduled at 15:00 local time on Thursday, but that reporters would dial into the news...

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.

Coronavirus combined with zero interest rates 'really worries me,' Bridgewater's Dalio says

Billionaire investor Ray Dalio, whose main Bridgewater Associates LP hedge fund fell sharply amid the coronavirus-led market rout, is concerned about the combination of zero interest rate policy and...

Vietnamese central bank to cut rates Tuesday to help virus-hit economy

The State Bank of Vietnam will cut its policy rates from Tuesday to prop up the economy, which has been hit by the coronavirus pandemic.

South Korea central bank takes policy rate below 1% for first time with 50 basis point cut

The Bank of Korea slashed interest rates by 50 basis points on Monday in its largest policy easing since the global financial crisis, joining central banks from the United States to Japan in trying to...

Dollar weakens after another surprise Fed rate cut

The dollar fell against a broad range of currencies on Monday after the U.S. Federal Reserve made another surprise interest rate cut and major central banks took steps to relieve a shortage of dollars...

ECB ready to rein in bond spreads, beef up purchases: Panetta

The European Central Bank is ready to rein in unjustified spreads between euro zone bond yields and even to beef up purchases to combat the fallout from the coronavirus, board member Fabio Panetta...

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...