The GBPUSD pair is holding positive ground near 1.2520 in early trading in Asia, supported by a softer US Dollar. The US Federal Reserve is expected to leave interest rates unchanged, with speculation that the first cut might not come until September. The Bank of England may start lowering borrowing costs in its June meeting, as Governor Andrew Bailey mentioned the possibility of two or three rate cuts this year.
AKEL has submitted a bill proposal to tax unexpected bank profits in order to help those struggling with high loan installments due to interest rate hikes. The proposal includes a 5% special levy on net interest income for 2023 and 2024, with expected revenues of €50 million per year going towards interest subsidies for housing loans. AKEL believes the government is not adequately addressing the issue and aims to provide real relief to households and small businesses.
The Japanese Yen is trading at its weakest level in over three decades against the US Dollar after the Bank of Japan decided to leave monetary policy settings unchanged.
The Central Bank of Cyprus has calculated the reference interest rate at 11.42 per cent, and it is considered an offence to receive financial benefits or assets that exceed this rate in the provision of loans.
Lloyds Banking Group’s pretax profit decreased by 28% in the first quarter due to rising costs, peaking interest rates, and competition in the mortgage market.
Investors are rushing into fixed yield opportunities before interest rates are cut, as central banks signal looser monetary policies due to cooling inflation.
The EURGBP cross traded lower around 0.8620 on Tuesday following mixed PMI figures from the UK and Eurozone.
The Japanese yen traded stronger against the euro at 164.90 on Monday. Bank of Japan Governor Kazuo Ueda made dovish remarks about the need to maintain accommodative monetary policies due to low inflation.
The newly appointed governor of the Central Bank of Cyprus, Christodoulos Patsalides, has expressed dissatisfaction with the interest rate disparity between lending and deposit rates in Cyprus.
The Euro-dollar currency pair is trading in the lower 1.0600s on Friday after news reports of an escalation in the Middle East conflict prompted a flight to safe-haven USD, resulting in a decline in EURUSD.