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Rates in sentence

8030 examples of Rates in a sentence

Central bankers have long recognized that it is imprudent to lower interest rates in pursuit of full employment if the consequence is an inflationary spiral.
Some days I think that, in the future, central bankers must also recognize that it is imprudent to lower interest rates in pursuit of full employment when doing so risks causing an asset price bubble.
People claim that Greenspan’s Fed “aggressively pushed interest rates below a natural level.”
But today is one of those days when I don’t think that Greenspan’s failure to raise interest rates above the natural rate to generate high unemployment and avert the growth of a mortgage-finance bubble was a mistake.
Conservative macroeconomic policy and financial-sector reform lowered interest rates and fueled an investment and consumption boom.
The crisis challenged the Washington Consensus, which assumed that the world was moving gradually towards free movement of capital and market-determined exchange rates.
Devalued exchange rates, moderate government budget deficits, and the passage of time all appeared to be equally ineffective remedies.
Though both gained in importance since WW II’s end, globalization of financial markets accelerated in recent years so that movements in exchange rates, interest rates, and stock prices in various countries are intimately interconnected.
To communicate their intentions simply and clearly, they may set an explicit target range in terms of a particular economic variable, or announce a forecast for the variable, or offer forward guidance by specifying a threshold value for it that must be met before changing interest rates.
Until the currency crashes of the 1990s, emerging and developing countries tended to target their exchange rates.
If an internal EU imbalance is to be corrected, deficit countries must accept real output losses, while surplus countries can maintain or even boost their growth rates.
Until recently, an exchange-rate peg dominated China’s monetary policy, with interest rates unchanged for nine years until October 2004, as the government attempted to manage lending through administrative guidance and credit controls.
In the future, China will have to rely more heavily on interest rates to manage monetary policy, using the price of capital, not political considerations, to influence how firms make investment decisions.
As a result, there is good reason to think that China and India may be able to sustain annual growth rates of around 7%, while developed countries such as the US tend to average 2-3% growth.
Extrapolating from these growth rates suggests that emerging markets could account for well over 50% of world GDP measured at market exchange rates by 2030.
In this decade, thanks to record-high oil prices, GDP growth rates soared.
The world’s major industrial economies, meanwhile, are maintaining very low interest rates.
Doubts about the sustainability of government debt produce sudden surges in interest rates, as risk premia rise dramatically with perceptions of the likelihood of default.
Government debt service has in general become easier, owing to low interest rates.
For example, because deforestation creates favorable conditions for mosquitos by producing ditches and puddles, which are more likely to pool less acidic water that is conducive to mosquito larvae development, countries with elevated forest loss tend to have higher rates of malaria.
The ECB could keep interest rates stubbornly high and fail to reach the agreements with peripheral governments that are needed so that it can buy their bonds on the secondary market.
Recently, opponents of structural reform have put forward more exotic objections – most notably the problem caused by deflation when policy interest rates are at zero.
The US economy is slightly more robust, although even there recovery from the 2008 financial crisis remains disappointingly slow, employment rates are well below 2007 levels, and annual inflation will not reach the Federal Reserve’s 2% target for several years.
In Shanghai, the G-20 foreign ministers committed to use all available tools – structural, monetary, and fiscal – to boost growth rates and prevent deflation.
But while some of these might increase potential growth over the long term, almost none can make any difference in growth or inflation rates over the next 1-3 years.
The Bank of Japan recently introduced negative interest rates, and next week the European Central Bank will probably take its own rate still further into negative territory or launch yet more quantitative easing (QE).
Negative interest rates are intended to spur credit demand among companies and households.
But if banks are unwilling to impose negative rates on depositors, the actual and perverse consequence could be higher lending rates as banks attempt to maintain margins in the face of the running losses they now make on their central bank reserves.
As Mark Carney, Governor of the Bank of England, has noted, negative interest rates should be used only in ways that stimulate overall global demand, rather than simply to move demand from one country to another via competitive devaluation.
But achieving such stimulus via negative interest rates may be impossible.
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