Bank of Baroda debt raise tops $1 billion under central bank's window
MUMBAI: India’s Bank of Baroda has raised $400 million through reissuance of its 5.3180% August 2031 U.S. dollar denominated bonds at a higher yield, becoming the second state-owned bank and the fifth issuer overall to tap the central bank’s discounted funding window for more than $1 billion, merchant bankers said. BoB, India’s second-largest state-run lender by assets, will offer a yield of…
Nordea's financial analyst Jan von Gerich suggests that the European Central Bank (ECB) remains focused on potential upward inflation risks and is likely to continue tightening monetary policy. The report indicates data dependence but predicts three additional rate hikes through September, December, and March 2027, ultimately bringing the deposit rate to 3%.
Energy prices and overall price pressures are crucial in determining the trajectory of interest rates. The ECB's July monetary policy report further underscores the bank's primary concern about upside inflation risks, implying that rates will need to be raised again unless price outlooks improve significantly.
Currently, the absence of second-round effects allows the ECB to closely monitor developments, aligning with a quarterly pace of 25 basis points (bps) rate hikes rather than more aggressive monetary policy tightening. However, the situation may become more acute, suggesting a need for a more proactive and faster rate increase if inflation expectations weaken, clear signs of rising price pressures emerge, or firms adjust prices more swiftly than usual.
Consequently, the team from The FXStreet Insights Team anticipates further ECB rate hikes at a quarterly pace, including hikes in September, December, and March 2027, with the deposit rate reaching 3%. At present, risks lean towards fewer hikes.
Earlier, GBP/USD experienced a drop to fresh six-day lows but regained some upward momentum, trading near the 1.3600 barrier. The cautious market sentiment continues to support the US Dollar ahead of upcoming data releases and Federal Reserve Chair Kevin Warsh's speech. Meanwhile, EUR/USD managed to stabilize, recovering from earlier losses and reaching mid-1.1600s.
This shift is attributed to slight improvements in the US Dollar, as investors now focus on Friday's Non-Farm Payrolls (NFP) revision and Fed Chair Warsh's address at the Jackson Hole Symposium.
Gold prices tumbled to new weekly lows around $4,570 per troy ounce on Thursday, reflecting the metal's continued weakness despite cautious market conditions and a lack of clear direction for the US Dollar. Cryptocurrency markets showed a bullish trend on Thursday, with Bitcoin nearing $80,000 and altcoins following a similar pattern, with Ethereum above $2,500 and Ripple surpassing its key $1.40 support.
The oil market, while relatively calmer compared to previous months, demonstrated a stark contrast with the US diesel crack spread soaring above $100 per barrel for the first time, reaching a record-high of just over $102.00.
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