interest-rates

Economists, they thought, were people who talked about whether interest rates would go up or down even though they did not know.

Britain, at least, was able to tailor its interest rates to local conditions, but not by enough to prevent a housing bubble.

In a free market, interest rates, like the price of any other consumer good, are decentralized and set by the market.

Using exchange and interest rates as well as the bank reserve requirement ratio to ensure liquidity in the banking system.

The combination of an increased demand for real money and a decreased supply of real money pushed interest rates up to 15percent a year.

The Fed is now trying to push down long-term interest rates by buying mortgage-backed and perhaps Treasury securities.

The risk of slowing growth in response to a US slowdown strongly suggests that the Bank of Japan will keep interest rates unchanged.

They have no desire to put their money in a bank when real interest rates on deposits are negative.

Interest rates are expected to stay very low for longer than many thought possible just a few months ago.

One reason to think not is that the central bank has not been able to raise interest rates anything like as quickly as it would like.

as it reflects the bank's response to the changing economic environment in general and to the sensitivity of interest rates in particular.

But now, to moderate that growth, Beijing is trying to tighten credit by restraining bank lending and by raising interest rates.

Gold's rapid rising, to a great extent is result of US dollar's negative interest rates. coupled with inflation, gold have to rise.

The Bank of Spain watched the build-up of a real-estate bubble without being able to raise interest rates.

In 2003, as a Fed governor, he was one of the loudest advocates of using low interest rates to insure against the calamity of deflation.

The big fear for the company has always been a spike in interest rates.

Lower interest rates could reduce the cost of funding for businesses and individuals at a time of great financial strain.

With interest rates at a measly . 001%, it seems silly to leave your savings sitting in the bank.

A rise in interest rates is often contemporaneous with an increase in inflation.

With real interest rates on deposits at negative levels, the temptation to take money out of the bank and invest in property is powerful.

With Japanese interest rates now heading up as well, such investors may have to think of a new game.

Economy is still expanding at a reasonably solid pace , and there is only expected to be a modest increase in US interest rates .

In trying to prevent financial-market calamity, the Fed may find itself pushed by Wall Street to leave interest rates too low for too long.

Indeed, with such a policy, long-term interest rates might have been lower and the asset boom even bigger.

Banks did not trust one another enough to lend to each other, causing a spike in interest rates charged to companies and governments.

But, banks should also be brave enough to say that, at current low interest rates, the free-if-in-credit model of banking is unsustainable.

Only a few months ago, the US Federal Reserve was telling markets the next move in interest rates was likely to be up.

Earlier this year it seemed that the Bank of England's next move might be a rise in interest rates as inflation was taking off again.

He said the modest price gains give the central bank time to breathe before hiking interest rates this fall.

You are going with your adversary in the way, with him on and interest rates.

The chancellor's main argument against fiscal stimulus was that it would raise interest rates and thus be self defeating.

The Bank of Japan (BoJ) began to lower interest rates in July 1991, soon after property prices began to decline.

The zero interest rates and the loose money supply had been used to control Japan's deflation.

Stakeholders expect to control the rising inflation situation, there is still room for interest rates of the Bank during the year.

he Federal Reserve Board would seem to have little reason to tighten the money supply and push interest rates up.

That flow tends to keep long-term interest rates in the U. S. unnaturally low, discouraging Americans from saving.

To break out of this vicious cycle, the ECB will have to cut interest rates, and return to a policy of unlimited long-term funding.

And with interest rates at 0. 5% for more than two years, leaving your cash in the bank has not proved to be a massively profitable option.

"We're probably not very far from the point where the question of interest rates is not the most important question, " Strauss-Kahn said.

It has cut interest rates three times in recent weeks and lifted limits on how much each Chinese bank can lend.

According to IPEA, a government-linked research outfit, the BNDES's subsidised interest rates cost taxpayers up to 21 billion reais a year.

A makeshift scheme was put in place in May to help countries that cannot otherwise borrow at tolerable interest rates.

But China might have to act faster in the event we do get a full-blown dollar crisis leading to much higher interest rates in the U.

Interest rates continued to be low and close to their US dollar counterparts.

It's one of the cheapest times to borrow but it's not as if consumers are flocking to cash in on low interest rates.

And this is bound to filter through the rest of the economy eventually, unless the bank raises interest rates soon.

Some members of the rate-setting open market committee noted that this "could be an effective way to reduce longer-term interest rates" .

However, the convergence of US and Chinese interest rates threatens to turn that into a loss-making proposition for Beijing.

Apple, which has no debt, could easily borrow money at low interest rates to make a large acquisition if it wanted, he said.

A frothy property market was one of the reasons for the Reserve Bank of Australia raising interest rates six times between October and May.

And like the Bank of Japan, they slashed interest rates and took extraordinary measures to try to keep credit flowing.

"As markets revive, fear of inflation will drive up interest rates, which will choke off recovery, " he said at a breakfast in New York.

He said he worries that a lower-than-expected inflation reading in March will delay a needed increase in interest rates.

If it does, the Fed might be forced to raise interest rates by more than is now forecast.

It's trying to run its own monetary policy, raising interest rates and ratcheting back bank credit to curb inflation.

For almost a year now, the Fed's been dropping interest rates, trying to pump money into the banking industry.

The other is factual: Chinese bond purchases do not seem to be affecting American interest rates.

Higher interest rates, the bank knows, would push thousands of marginal Chinese companies into at least technical bankruptcy.

The Bank for International Settlements (BIS) has warned that low interest rates across the globe are a threat to world financial stability.

He thought it better to replace its control over interest rates and the money supply with a mechanical rule for monetary growth.

India has raised interest rates nine times in just over a year as it tries to curb inflation.

Although most of its efforts have been aimed at price controls, they've started to turn the screw on interest rates as well.

But so far, he said, the government has kept prices mostly in check by raising bank reserve requirements and interest rates.

In Europe, the ECB is still likely to raise interest rates again, while the Bank of England looks as though it will now wait and see.

Back then he thought lower interest rates would be enough to boost employment.

Meanwhile, two of the world's major central banks may be about to cut key interest rates in an attempt to boost the economy.

Interest rates are at 1% or below in most rich countries, and there seems to be little prospect of their rising soon.

Any "pre-commitment" on interest rates might undermine the influence of the ECB, Mr Trichet warned in a speech in London.

Ms. Yellen said the bank was 'actively considering' changes to the language it uses to give guidance on interest rates.

Its yield is often used to set interest rates on mortgages and other consumer loans.

Yet, for all that, Mr Mishkin stuck to the Fed's line that it should not have tried to restrain house prices with higher interest rates.

The ECB president indicated the ECB was prepared to cut eurozone official interest rates if the economic outlook continued to deteriorate.

The U. S. central bank in its monetary policy pushes interest rates up or down by moving money in and out of the financial system.

Worse still would be a combination of a return to higher levels of interest rates combined with a decline in crop prices.

In the long run, theory suggests that higher growth, other things equal, should mean higher interest rates for a given rate of inflation.

While interest rates have been a major driver of the currency in recent months the growth story is coming back to the fore.

There are signs that it is ready to provide longer-term liquidity (up to one year) to banks and to ease interest rates.

"Interest rates, er, set by the Bank of Japan, are going up from zero to 0. 25%, " he said.

Nobody is really sure how much QE pushes down long-term interest rates but it appears to take a lot of it to make a difference.

It started raising interest rates last December and is expected to keep doing so at least until the end of this year.

most of it is charged at variable interest rates and thus linked to the borrowing costs set by the Bank of England.

The Bank of Japan has kept interest rates close to zero but remains otherwise oddly reluctant to take stronger action.

The Bank of England's monetary policy committee is split on whether to raise interest rates, but it has got more hawkish.

When U. S. house prices were rising and interest rates were low, even the poor got a chance to get a mortgage and a home.

Congress would have no say in the matter and besides, Congress likes low interest rates.

He said he had come to suggest that Bank of America pay higher interest rates on savings accounts.

"I said if I have to haul us kicking and screaming into single-digit interest rates, I'll do it, " he recalls.

Banks are making good money from interest rates at the moment, and can be expected to make more if the economy really picks up in 2011.

That is to say, low interest rates are a symptom of recession, and recession is often a symptom of too-tight monetary policy.

As interest rates rise and the size of the debt increases, "debt affordability will deteriorate in a major way, " he said.

No matter how much risk they take or how they manage it, they can borrow at rock-bottom interest rates.

The Federal Reserve is still spooked by recession. It kept interest rates unchanged this week, as did the Bank of England earlier in June.

Low interest rates were helpful to economic recovery, and there did not seem to be any sign of excessive credit creation.

It had become clear that pushing interest rates down near zero for an extended period had failed to get the economy moving.

Its yield is often used as a benchmark to set interest rates on mortgages and other loans.

Subsequent downward pressure on interest rates came from a fall in the demand for real money, just as in the case of the OPEC recession.

a rise in interest rates is often contemporaneous with an increase in inflation; the composer Salieri was contemporary with Mozart.

Some of the costs might be passed on to borrowers in the form of higher interest rates.

The loan was organised in the form of a currency swap agreement between the Bank of Thailand and the HKMA at market interest rates.

Yet, ultimately, the cost of the debt owed to official sources will have to be cut by lowering interest rates or reducing sums outstanding.

Because of that, investors typically spend a lot of time trying to predict corporate profits, interest rates, inflation and the like.

Among the earliest changes they wrought was to reduce usurious interest rates, and build a few hospitals and roads.

An increase in interest rates will undoubtedly result in an immediate stifling of any increase in economic activity.

Real interest rates are likely to stay negative until the U. S. dollar collapses and is officially declared dead and worthless.

Lenders, for instance, are required to quote interest rates as annual percentage rates, making loans easy to compare.

The employers' federation, Confindustria, frets that higher oil prices, rising interest rates and a strong euro could derail the recovery.

'The current abundant liquidity and low interest rates will not last forever, ' he said. 'Neither will rising property prices. '

Central banks around the world slashed interest rates in a desperate attempt to get people and businesses spending again.

Economists said the data underpinned the case for the Fed to lower interest rates sharply at a meeting next week.

Mr. Reagan's immediate challenge was that inflation and interest rates were out of control.

In times of such peril, even a small cut in interest rates by the European Central Bank and the Bank of England would send a helpful signal.

Expansion of the money supply also temporarily lowers interest rates, which creates malinvestment as well.

Both have ultra-low interest rates, which don't seem to be having much effect in stimulating the economy.

Wage growth must at least keep pace with productivity growth; interest rates must rise substantially; and the currency must be revalued.

The central bank decided to cut interest rates back to record lows to avert a recession and took big steps to help cash-strapped banks.

Investors, fearing America will have to inflate its way out of such debt, could push the dollar down and interest rates up.

UK interest rates are expected to be kept on hold at 5% following the latest meeting of the Bank of England.

Mr Barro, for his part, seems to blame the Fed for holding down interest rates and facilitating government borrowing.

We saved up a little bit of dollars to low interest rates to lend American consumption.

This excess of savings over investment in the rest of the world is not the result of high US or global real interest rates.

If it is not seen to be working right away, real interest rates will continue to rise sharply and quickly as they have this week.

Two members of the Bank of England's policy committee last month voted for an immediate rise in interest rates.

To be a good bet against near-zero interest rates and unpredictable currency fluctuations, art needs the potential of a global market.

The housing boom had its origins in the early years of this decade thanks to then historically low interest rates.

And the long view shows that we now stand at the tail end of the greatest secular swing in interest rates in U.

Others claim that government borrowing is driving up interest rates, and that this will derail recovery.

This marks a second round of bond buying by the Fed in an effort to drive down interest rates, a policy known as quantitative easing.

And he has blamed the bank both for failing to cut interest rates and for negligently letting the euro appreciate.

That it has not taken them reflects scepticism that driving long-term interest rates even lower would be worth the criticism.

Because Chinese could not invest offshore, much of that saving went into state banks at low interest rates.

Asian stocks enjoyed a strong rally yesterday as expectations of a cut in US interest rates gave a boost to financial and property groups.

Too much was done on the never-never at a time when low interest rates encouraged households to let debt rip, too.

Interest rates are very low. Why don't you borrow the money from the bank?

Indeed, India probably has the lowest real interest rates of any major economy, despite having one of the world's fastest growth rates.

Enabling lower long-term interest rates can be part of that, but only a small part.

Analysts across Europe said the pledge to keep interest rates low in the United States is good news.

Yesterday's sharp cut in interest rates is a direct result of that interdependence.

Indeed, declines in interest rates, which also weakened countries' exchange rates, help explain why GDP did not decline even more sharply.

As if on cue, major central banks cut interest rates in November and December to spur growth and prop up their financial systems.

Until that revolution occurs, would it be so bad if the UK government borrowed a bit more when world interest rates are unprecedentedly low?

He says the disparities make it hard to manage a currency pegged to the Indian rupee at a time when New Delhi is raising interest rates.

All that people would have seen was a recession brought on by high interest rates.

The difference is that China is still growing and interest rates are expected to stay low for a while due to slow recovery.

The age of decline of interest rates will change with the economic cycle emerged, but the research of its effect on consumption is rare.

With tuition fees, most students take out a loan of about 3, 225 pounds a year at low interest rates and pay it back after they graduate.

And this omits the contribution to global liquidity of the Bank of Japan, whose low interest rates are fuelling the "carry trade" .

Markets seem to view that as close to zero: interest rates on index-linked bonds in the France, Germany, the UK and US are about 1 per cent.

The negative mood comes just a day after European central banks slashed interest rates in the hope of stabilizing the markets.

The burden of repaying so much more debt means that the total servicing charge is high even at low interest rates.

"We still think they will raise interest rates before the end of the year. . . . We'll have to see, " said Action Economics' Cohen.

The Bank of Japan yesterday began a two-day policy board meeting amid political pressure not to raise interest rates.

Inflation has been held down by those cheap imports, enabling the Bank to keep interest rates lower than would otherwise have been the case.

Jen argues that this flood of petrodollars will depress global interest rates and support the price for risky assets over time.

A typical loan is for $3, 000, usually for a year or two, with annual interest rates of around 25%.

Against that backdrop, interest rates could stay low 'for an extended period, ' he said.

You could argue the main thing the U. S. got in return was a housing bubble caused by artificially low interest rates.

Now, this assumes that the U. S. government's credit will remain good so that it's able to borrow at relatively low interest rates.

With interest rates that independence is (or should be) easy to maintain.

Email Print China has raised interest rates incrementally over the last six months in an ongoing effort to tame rapidly rising prices there.

The bank, which gave no other details about the meeting, is under pressure to cut interest rates for the second time this month.

Back in February, when inflation fears were widespread, I wrote a column with a strategy for lower inflation and rising interest rates.

True, such growth would bring with it earlier interest rates hikes and a quicker end to liquidity-pumping exercises by central banks.

So far, the most common form of short-term investments to pay taxes or lowering bank interest rates for foreign investors.

Still others involve financial information like the money supply and interest rates.

Tightening at this point, with ultra-low interest rates in the US, would be monetary suicide.

Fearful of a currency collapse and sharply higher interest rates, the British had no choice but to agree.

The bank's decision to keep interest rates unchanged had been widely predicted.

But the fact remains that Annaly is beholden to the repo market, as well as being heavily exposed to any shift in interest rates.

This time, he said, interest rates may not fall much, because of the Asian boom, and that will put more pressure on housing prices.

The bank raises or lowers interest rates in violation of stipulations or resorts to unjustified means to absorb deposits and issue loans.

since the Bank of England is determined to keep interest rates low.

The Bank of England and European Central Bank hold separate meetings, but both are likely to keep interest rates on hold.

There is no obvious prospect of a rapid jump in short-term interest rates of the kind that caused havoc for banks in 1994.

Green mortgages with low interest rates that allow businesses and homeowners to "pay as you save" on energy are also becoming popular.

"You do not need to raise interest rates to deal with a shortage of pigs, " said Tom Orlik, an economist at Stone & McCarthy in Beijing.

And with interest rates down and technology shares trailing most sectors, dealmaking is one of the better options for using corporate cash.

Eurozone interest rates are almost certain to be cut by at least half a percentage point next week.

In Brazil businesses find it hard to get loans from private banks for longer than a year, and interest rates remain high.

A chapter in its recent annual report asks whether the hidden costs of low interest rates might be greater than the visible benefits.

The government has handed control of interest rates to the Bank of England and climate-change targets to a committee of experts.

The forint is not quite back to where it was before the financial crisis but the central bank has felt able to start cutting interest rates.

But those half-hearted measures were no match for corporate profit growth, low interest rates and all that liquidity.

If interest rates rise, the option cushions portfolio loss as the bank receives the option premium.

At some point when the economy recovers from recession, the Fed is going to have to withdraw this money and raise interest rates.

Interest rates have not been raised but savers are acting as if they have been.

This is not to say that China's interest rates should be as high as 13% or so, in line with its nominal growth.

That would avoid premature and dangerous tightening while calming bond markets enough to hold down long-term interest rates.

Futures are pricing in official US interest rates of close to zero for at least a further six months.

This can happen when interest rates are unusually low, as they were in the United States in the early 2000s.

In its latest policy meeting, the Fed repeated its expectation that interest rates will remain close to zero for "an extended period" .

Instead, they are trying to control inflation by raising interest rates and restricting credit.

Bubbles seem to require prolonged periods of prosperity, damped inflation and low long-term interest rates.

Although the Bank can use interest rates to influence the demand for credit, global capital flows limit its effectiveness.

Although the central bank continues to cut interest rates and statutory reserve ratio, but the bank's capital has remained unmoved .

China had already begun to implement tightening measures when it raised interest rates and increased reserve requirements last month.

The market is still pricing in no change to interest rates over the short term and a rate hike next year.

Unlike other central banks, the Fed more than a year ago began lowering interest rates, which punished the dollar.

Printing more dollars, or cutting U. S. interest rates, tends to weaken the dollar and makes U. S. exports more attractive.

Economists said the US inflation figures made the Federal Reserve more likely to keep interest rates on hold.

Such a fall could shake markets globally, boost interest rates in Europe, and threaten to undermine a global recovery.

Central banks across the globe have cut interest rates in an attempt to boost growth after the 2008 financial crisis.

The US enjoys among the lowest interest rates in its history coincident with the highest deficits and a daunting long-term fiscal outlook.

TOSHIHIKO FUKUI, the wily governor of the Bank of Japan (BoJ), would dearly like to raise interest rates.

But as the economy recovers and interest rates rise, the Fed can increase the interest rate it pays banks to hold reserves as well.

Up to a point, this can be offset by cutting domestic interest rates.

The United States central bank, the Federal Reserves says it will keep interest rates close to zero for an extended period.

In such a situation, the central banks would have no choice but to cut interest rates to zero.

The problem is that interest rates are now beginning to rise, and the mountains of debt will have to be paid back.

Mr Hasenstab's fund is positioning itself for rising interest rates. US bond yields should be "meaningfully higher" , he said.

But then the NASDAQ index fell 22% over the following year, although the Fed continued to cut interest rates aggressively.

The central bank of Canada, another major commodity exporter, followed with its own increase in interest rates in June.

Interest rates in many rich countries are now close to zero, which may increase the potency of, as well as the need for, fiscal stimulus.

But any increases in interest rates or controls on lending were unlikely before Chinese New Year in February, he said.

London equities were given a boost on Thursday as the Bank of England chose to keep UK interest rates on hold.

Finally, economists in the "Austrian" tradition argue that the mistake was to set interest rates below the "natural rate" .

Instead its government continues to be able to borrow at extraordinarily low interest rates.

Interest rates and bond yields are low by historical standards. It ought to be a great chance for companies to expand.

This would have let it pump almost unlimited cash into the money market without fear of interest rates falling to zero, Japanese-style.

Instead of trying to meet monetary targets, they use their own money to determine short-term interest rates.

The news will affect the Bank of England's thinking on whether and when to raise interest rates this year.

Therefore, increasing interest rates on reserves is just as contractionary as the standard exit strategy.

Exorbitant interest rates and the risk of devaluation mean taking a loan at the moment would be suicide.

Chairing his first meeting of the Bank's monetary policy committee (MPC), interest rates were cut to a post-war low of 3. 5%.

With interest rates in the U. S. near record lows, investors are searching farther afield, and are often willing to take on more risk.

The Bank of Canada has signalled that it may soon raise interest rates.

But certainly interest rates have risen since October, so at least there has been rebalancing on this front, right?

At the very least, it would only do so if it expects variable interest rates to remain low for some time.

Mr. Bernanke has said the steps helped to lower long-term interest rates, including rates on mortgages.

For that reason, the Fed is widely expected to keep interest rates on hold, at 2%, for a second successive meeting.

Bank interest rates have been low for years, financial products have been limited, and citizens have had few channels to invest abroad.

But in an unusual move, Romney said Monday that he agrees with the president that low student loan interest rates should be extended.

As a tool for banks to manage their interest rate risks. But it is still for the banks to determine their own interest rates.

Raising interest rates in that climate could slow growth at a time when unemployment is still high.

They are trying to control inflation by raising interest rates and using capital controls.

With interest rates so close to zero, banks are having to cut their lending rates but have no room to drop their deposit rates further.

With nowhere for interest rates to go but up, bonds do not need political risk to look unattractive.

The Federal Reserve said it would likely keep short-term interest rates near zero for at least two more years.

And, third, with interest rates near zero, investors are bound to be tempted to move money into risky assets.

You need to use two interest rates to solve this problem: one that the kid knows about and another that the bank uses internally.

For now, Japan has no trouble raising funds to meet its debts, and interest rates on government bonds are barely above 1%.

So far, Australia is the only country that has raised interest rates to control inflation.

Unable to borrow from official channels, private business owners have to borrow money at sometimes outrageous interest rates.

On Thursday, the Bank of England dropped interest rates a full point down to the two percent level.

Though the bank initially cut interest rates from 5. 75% to 5%, it has not reduced them further for fear of stoking inflation.

India's central bank has raised interest rates six times since January in an attempt to tame double-digit inflation.

Already, interest rates have hovered around zero for a decade, and quantitative easing has flooded the system with funds, to little avail.

However, we believe along with consensus that the Bank will not hike interest rates.

China had already raised interest rates in October to combat the fastest inflation in two years.

Wonga said the UK market was thoroughly regulated and that Mr Damelin was referring to some countries' limits on annual interest rates.

Interest rates on investment-grade and junk bonds have continued to fall by the day .