RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Fed Confirms Rate Meeting Schedule Despite Severe Winter Storm in Washington D.C. 
JPMorgan Lifts Gold Price Forecast to $6,300 by End-2026 on Strong Central Bank and Investor Demand 
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom 
Bank of England Expected to Hold Interest Rates at 3.75% as Inflation Remains Elevated 
A survey of fund managers by Bank of America Merrill Lynch showed that investors are quite positive on higher interest rate environment in the coming future.
- Investors are more optimistic about banks than they have been since 2003. It is expected a rate increase by central banks (FED, BOE) likely to benefit banks and banking stocks, who currently faces lower interest rate income due to lower rates.
- Fund managers are a net 30% overweight on banking stocks, which shows the extent of expectations of a rate hike from FED in 2015.
Bond yields move up, in a rate hike environment, which helps the bank to reap higher returns by investing the deposits.
Overweighting the banking stocks have risen by 11% as investors prepare for first rate hike from US FED in fourth quarter.
Banking stocks in UK are also expected to rise as focus will shift to BOE rate hike after FED's move.
