
Thailand Set to Cut Rate in Last Meeting Before New Leadership
The BOT's Monetary Policy Committee could cut the benchmark one-day repurchase rate by a quarter-point to 1.5% on Wednesday, according to 14 of 23 economists in a Bloomberg News survey. The rest expect the central bank to leave the rate unchanged for a second straight meeting.
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Forbes
34 minutes ago
- Forbes
Fed Expected To Cut Interest Rates, Though Inflation May Be Picking Up
WASHINGTON, DC - SEPTEMBER 18: Federal Reserve Chairman Jerome Powell speaks during a news conference following the September meeting of the Federal Open Market Committee at the William McChesney Martin Jr. Federal Reserve Board Building on September 18, 2024 in Washington, DC. The Federal Reserve announced today that they will cut the central bank's benchmark interest rate by 50 basis points to a new range of 4.75%-5%. (Photo by) Getty Images Fixed income markets fully expect that the Federal Open Market Committee will cut interest rates on September 17. However, economic data suggests that the FOMC may have to manage a monetary policy trade-off over the coming months. That's because the jobs market appears to have been weakening between May and July. That would typically call for lower rates. However, inflation may be picking up slightly on recent data. If that trend continues it might imply higher rates are needed. Of course, the FOMC only has a single policy tool, interest rates, so if unemployment rises and inflation picks up, then the FOMC's decision making may be made more complicated. The July Employment Situation Report saw 73,000 nonfarm payrolls added for July, which was itself a relatively slow pace of growth compared to prior months. However, figures for May and June were also revised down significantly to under 20,000 nonfarm payrolls added in both cases. In contrast, over 100,000 jobs had been added monthly over most of the prior 2 years. That said, the unemployment rate has been relatively stable since summer 2024, but if the recent slow pace of job creation continues, it may signal downside risk for the economy. The jobs report for August will be released on September 5, offering further data before the FOMC next meets. Recent data has shown some acceleration of inflation, too. July Producer Price Indexes showed a relatively pronounced rise in prices. In addition, there were some signs of rising prices in the July Consumer Price Index. For now, overall inflation remains relatively mild. For example, annual inflation is close to 3% to July depending on the metric used. However, the FOMC's annual target is 2% and inflation could accelerate further as the impact of tariffs, which in many cases have only been recently implemented, are felt. That said, some policymakers have said they are willing to look through any tariff-related inflation, believing it will be one-off in nature. If so, that makes it an easier decision to lower rates if there are concerns about a softening job market. At the last FOMC meeting in July both Christopher Waller and Michelle Bowman dissented, preferring to lower rates. That and the likely appointment of Stephen Miran to the FOMC before the September meeting, suggest added pressure for a rate cut. That's because President Trump is known to favor lower rates, and he likely proposed Miran with the belief that he would vote to lower rates. It seems likely that the FOMC will cut interest rates in September. There are still more economic reports to come before that meeting, but fixed income markets strongly predict a rate cut. That said, there are signs that inflation could be accelerating, that may not prevent a September cut, especially if signs of a soft labor market continue, but could present challenges for policy makers later in 2025 if they have to choose between restraining inflation and supporting the jobs market.
Yahoo
3 hours ago
- Yahoo
HMRC confirms change that will give taxpayers lower interest rates in days
HMRC has announced the dates its new interest rates will take effect. Depending on the payment plan used by taxpayers, the dates for the diary were August 18 and 27. The change follows the Bank of England's recent base rate cut, the Mirror reports. READ MORE: 'New garden shed tax' warning as householders urged to check if they're affected The Bank of England Monetary Policy Committee declared a drop in the base rate on August 7. It will drop from 4.25 per cent to four per cent, marking the lowest it has been since March 2023. The base rate sets the tone for interest rates for building societies and banks. It impacts everyone from savers to homeowners, credit card holders and HMRC. Changes to HMRC's interest rates will affect those making late tax payments or receiving repayments on their bill. The current interest rates charged on these payments stand at 8.25 per cent and 3.25 per cent respectively. The late payment interest rate, which is calculated as the base rate plus four per cent, will drop to eight per cent following the Bank of England's change. Repayment interest rates, calculated as the base rate minus one per cent, will now drop to three per cent. The interest rates for quarterly instalment payments will fall on August 18. Meanwhile non-quarterly instalment payments will not benefit from the new rates until August 27. The interest rates were designed to incentivise people to pay tax on time and avoid the late payment interest. The repayment rate aims to fairly compensate taxpayers for any loss incurred due to overpayments. Late payment interest rates hit a record high of 8.5 per cent earlier this year - a level not seen since February 2000, according to HMRC data.
Yahoo
5 hours ago
- Yahoo
Sea Limited Stock Popped 20% After Earnings. Is It Too Late to Buy?
Key Points Sea Limited has gone from a money-losing company to a highly profitable business in just a couple of years. Its recent earnings show continued progress, and patient investors have been handsomely rewarded. With the stock at a multiyear high, Sea Limited could still be an attractive investment. 10 stocks we like better than Sea Limited › It wasn't too long ago that Southeast Asia-based Sea Limited (NYSE: SE) was essentially left for dead by investors. For example, at the end of 2022, overall revenue growth was just 7%, and the business had burned through billions of dollars in cash in the prior 12-month period. Although the company's e-commerce business was doing quite well, the long-established digital entertainment business was hemorrhaging active users and saw bookings plunge by 18%. For the full year of 2022, the company posted a net loss of $1.7 billion. However, the company did a phenomenal job of turning things around. In 2024, all three business segments grew, and overall revenue increased by 28%. Sea posted a $448 million profit for the full year, and the business was firing on all cylinders. Investors were handsomely rewarded, and the stock gained 162% last year. Sea just reported its second-quarter earnings, and the results sent Sea spiking even higher. With shares already up another 65% in 2025, is it too late to add shares of this excellent business to your portfolio? Sea's second quarter was a strong one Sea's Q2 results were much better than expected, and a quick rundown of the key numbers shows just how well this business is doing. First, all three main business segments did well: The Shopee e-commerce business produced 34% year-over-year revenue growth. The Monee financial service business saw loan principal balances rise by 94% compared with a year ago. Not only that, but the non-performing loan ratio of just 1% is remarkably low and has improved in recent quarters. The Garena digital entertainment (gaming) platform grew bookings by 23% year over year, and management is guiding for 30% full-year growth in bookings. Overall, Sea's revenue increased by 38% compared with last year's Q2. Not only did all three businesses grow, but profitability is leaps and bounds ahead of where it was a year ago. Gross profit increased by 50% year over year, and net income surged from $79.9 million a year ago to $414.2 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 85%, including rapid growth from all three segments, and Sea now has $10.6 billion in cash on its balance sheet. Is Sea's stock too expensive? To be sure, Sea Limited is not a cheap stock. At the current share price, it trades for about 45 times forward earnings expectations. However, with revenue growth of nearly 40% and rapidly expanding margins, there's a solid case to be made that the valuation is completely justified. On the e-commerce side, as the dominant platform in Southeast Asia, Shopee has a ton of potential to deepen relationships with customers (think about how your relationship with Amazon (NASDAQ: AMZN) has evolved over the past 15 years). Plus, the Monee fintech platform is expanding into several different verticals, such as buy-now-pay-later (BNPL) lending, and its ecosystem could be in the very early stages of growth. Sea is a far more efficient company than it was a few years ago and has done a great job of growing at a rapid pace without burning through capital. If the company can continue to keep its momentum going, there could still be plenty of upside potential in the years to come. Should you buy stock in Sea Limited right now? Before you buy stock in Sea Limited, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Sea Limited wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,113,059!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Matt Frankel has positions in Amazon and Sea Limited. The Motley Fool has positions in and recommends Amazon and Sea Limited. The Motley Fool has a disclosure policy. Sea Limited Stock Popped 20% After Earnings. Is It Too Late to Buy? was originally published by The Motley Fool