Erdogan’s still against interest rate hikes
Erkan will continue tightening despite Erdogan’s objection to high rates, predicting annual inflation to climb until the second quarter of 2024. The central bank is aiming to protect jobs and economic growth while bringing inflation to single digits. Finance Minister Mehmet Simsek supports Erdogan as rates rise and GDP slows. Moody’s may upgrade Turkey’s credit…
Lira has fallen 26% and the interest rate still hiking
Ankara’s struggle as it moves towards more conventional policies is highlighted by an 8.5% increase in prices in August. The new finance minister and central bank chief implement a policy U-turn, including interest rate hikes to limit domestic consumption. The falling lira and tax hikes keep inflationary pressure high. After years of dramatic rate decreases,…
A new record of US mortgage rates
The average 30-year mortgage rate reached 7.09%, the second-highest since 2001, following a U.S. government debt downgrade. The mortgage applications index declined by 3.1% to 194.5, a six-month low. The Federal Reserve’s aggressive interest rate hikes may be impeding home price cooling, but increased mortgage rates and reduced demand may be beneficial for shelter prices…
CPI inflation data pulling down many of US stocks
Wall Street’s main indexes dipped on Wednesday due to critical inflation data and Fed remarks. Rate-sensitive megacap growth and technology firms like Nvidia, Apple, and Tesla fell 1.3% to 4.6%. The Federal Reserve may keep interest rates constant until economic data changes. The July CPI is expected to show a small year-over-year acceleration, with consumer…
Commonwealth Bank announced final dividend and a stock buyback
Australia’s largest lender, Commonwealth Bank of Australia, reported a record annual profit due to rising interest rates and increased living costs. The bank set aside $A1.47 billion more in provisions due to ongoing cost of living pressures and rising interest rates. Cash earnings for the year ended June 30 grew 6% to A$10.16 billion, slightly…
Certain bank’s still facing highly risk
Moody’s downgraded 27 lenders and warned of downgrading many major banks due to rising interest rates, funding expenses, and a recession. The system remains highly rated, but analysts acknowledge headwinds and caution against undercapitalization or underfunding. The downgrades were due to falling bank profitability in the future quarters, and the impact of rising interest rates…
Expenses and unemployment are rising on Australia’s economic
Australia’s top banks, Commonwealth Bank of Australia, National Australia Bank, Westpac, and ANZ Group, may post weaker profit margins in the June quarter due to rising expenses and unemployment. The Reserve Bank of Australia has left rates constant at 4.1%, and analysts are monitoring for rising bad debt rates. Mortgage competition has reduced profitability risk…
Bad debts warned on South Africa’s Bank
South Africa’s top five lender, Nedbank Group, warned that its bad debts would remain high for the rest of the year and may fail its 2025 financial projections. However, shares rose 2.5% in early trading, and CEO Mike Brown forecasted a decline in problematic loans from the first half. The bank’s well-capitalized, cautious lending, and…