Short-term interest rates

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

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

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

Of course, those 17% short-term interest rates sent the U. S. economy into a major recession.

In previous recessions it was able to accomplish this by dramatically reducing short-term interest rates.

When short-term interest rates began to rise after 1947, the cost of keeping money idle rose commensurately.

Third, given this growth of global liquidity, long- and short-term interest rates began to fall precipitously.

But high unemployment is precisely what should make it easy for him to keep short-term interest rates low.

Floating rate bond: Bond on which the coupon is established periodically and calculated with reference to short-term interest rates.

But Mrs Thatcher's efforts at deficit reduction were accompanied by sharp falls in short-term interest rates and a currency depreciation.

Low short-term interest rates earlier this decade led to a bonanza in adjustable-rate mortgages (ARMs).

A cut in short-term interest rates that is not matched by falls in long-term interest rates will produce a steeper yield curve.

Saying the economy is continuing to weaken, the U. S. central bank Tuesday cut short-term interest rates to nearly zero.

But, while bank profitability and bonuses have returned, lending has not recovered, despite record-low long- and short-term interest rates.

Fed officials have been comfortable enough with inflation to hold short-term interest rates near zero.

Looking at short term interest rates is a way of getting ahead of the curve.

Tight Monetary Policy A policy issued by a Central Bank to fight against inflation usually achieved by increasing short-term interest rates.

Among them is the threat posed to the profitability of the financial system when short-term interest rates rise, as eventually they must.

Easy Monetary Policy A policy issued by a Central Bank to assist economic growth usually achieved by reducing short-term interest rates.

Throughout the region, central banks are keeping short-term interest rates far too low to combat these inflationary pressures.

For the time being, few people expect the US Federal Reserve to raise short-term interest rates from their historic lows close to zero.

That's not for want of trying, though. The US has had zero short-term interest rates for well over two years.

Right now, the Fed has assured investors it plans to keep short-term interest rates near zero for 'an extended period. '

The question is whether these efforts would lead to a significant increase in short term interest rates.

Part of the developing strategy is to reveal Fed forecasts for short-term interest rates.

Short-term interest rates have been low for some time, so investors are tolerant of lower returns.

It's true that the Fed has already pushed one pedal to the metal: short-term interest rates, its usual policy tool, are near zero.

The shape of the yield curve (the difference between long- and short-term interest rates) also makes a difference.

The US yield curve flattened as short-term interest rates rose while long-term rates traded within a narrow band.

In many countries short-term interest rates are near zero and in a banking crisis monetary policy works less well.

But central banks that cut short-term interest rates are not routinely accused of deliberately driving their currencies down.

American official short-term interest rates are far more likely to go down than up.

Thus, real short-term interest rates are likely to remain unusually low for quite some time.

The fed can hardly lower short-term interest rates any further, and it has already bought up billions of dollars in mortgage debt.

Under today's fiat-money regimes, central banks, as a rule, control short-term interest rates.

Borrowers got long-term debt at near short-term interest rates. Lenders got almost instant access to their cash at a higher yield.

Short-term interest rates remained very low, but long-term rates had increased on expectations of monetary tightening in the US.

But it has also made the economy more sensitive to changes in short-term interest rates.

The government wants to minimise the risk that short-term interest rates spike and lenders flee just when lots of debt must be refinanced.

Expectations of higher short-term interest rates trumped the safe-haven appeal of the bonds.

Five years ago, central banks led by the US Federal Reserve fretted and cut short-term interest rates aggressively.

The central bank steers the economy by setting short-term interest rates and providing emergency loans to banks.

Since March 2009, the central bank has said it planned to keep short-term interest rates low for 'an extended period. '

Depending on how you measure inflation, real short-term interest rates are already around zero or negative.

How does long-term interest rates get affected with the low short-term interest rates and in turn help with long-term investment?

It will involve a combination of allowing the securities portfolio to shrink and raising short-term interest rates.

To tame the era's rampant inflation, the Federal Reserve pushed short-term interest rates above 20%, slamming the brakes on the economy.

Unfortunately, many popular single-regime models do a poor job of modeling the short-term interest rates.

After it does raise short-term interest rates, it will gradually sell its mortgage securities over three to five years.

Short-term interest rates are near zero in both countries and likely to remain there for a long time.

I would add two further reasons why the time to raise short-term interest rates should be drawing nearer.

This is a profitable strategy when, as now, short-term interest rates are close to zero and the yields on longer-term bonds are higher.

Fed officials meet Tuesday, three years after they took short-term interest rates nearly to zero.

After all, short-term interest rates are already about zero, and the Fed cannot cut interest rates below zero.

Yields are lower partly because the Federal Reserve has driven America's short-term interest rates close to zero.

Hot Money Money that flows regularly between financial markets in search for the highest short term interest rates possible.

The shorter cycles call for short-term interest rates in Germany to rise on Friday, but this is the most likely day for a minor peak.

Current low short-term interest rates are almost a bagatelle in comparison.

With short-term interest rates currently near zero, this tool has been largely irrelevant.

The Federal Reserve has already pushed short-term interest rates to near zero.

Short-term interest rates in the interbank market remain elevated.

Inflation fell because the Federal Reserve tightened monetary conditions and allowed short-term interest rates to rise sharply.

Profits are being boosted by rock-bottom short-term interest rates.

Readers will recall short-term interest rates being pushed to very high levels in 1997 when the Asian financial crisis began.

They have kept short-term interest rates steady at 5. 25% since June, but have made clear that inflation is what worries them most.

or targeting bond yields, not just short- term interest rates.

Last month the central bank cut short-term interest rates by half a point.

Short-term interest rates near zero make cash even duller than usual.

The Fed normally would push down short-term interest rates when the economy is weak.

Due to the Fed's low rates, the European Central Bank held short-term interest rates low in the euro zone in 2003-05.

Lowering short-term interest rates is the Federal Reserve's main way to get banks to increase lending.

Today, short-term interest rates look far too high in the eurozone and the UK.

That might explain why short-term interest rates in China's interbank market have been relatively subdued.

They are also priced off central banks' short-term interest rates.

The problem is short-term interest rates, which is what the Fed normally lowers to boost economic growth, can't go any further south.

And, despite the darkening economic backdrop, he kept short-term interest rates at 1. 5% this month.

Short-term interest rates are 6. 5 per cent compared with a nominal GDP growth rate of 13-14 per cent.

That is certainly the case for the standard monetary weapon--cuts in short-term interest rates.

In July, short-term interest rates in Russia shot to 100 percent.

Short-term interest rates remain elevated as banks and all kinds of investors refuse to lend or charge high rates.

If short-term interest rates stay where they are, it's virtually impossible to run a government [bond] fund and make any money.

Inflation was then over 13 per cent and short-term interest rates were above 16 per cent.

In 2003 average short-term interest rates in the G7 economies fell to their lowest in recorded history.

Normally central banks fix only short-term interest rates but these are not normal times.

In the near term, bond yields are constrained because they reflect expectations of the future level of short-term interest rates.

The benefit through 2011 is that short-term interest rates will stay low.

After the dotcom bubble burst in 2000-01, the Fed slashed short-term interest rates to 1% by 2003.

On the other hand, the funds tend to suffer when short-term interest rates rise, or when turmoil subsides.