Rates
in sentence
8030 examples of Rates in a sentence
It is often claimed that monetizing fiscal deficits would commit central banks to keeping interest
rates
low forever, an approach that is bound to produce excessive inflation.
Economic recovery is all about jobs, not output, and politicians are willing to push for economic stimulus, both fiscal (tax cuts or government spending) and monetary (lower short-term interest rates), until jobs start reappearing.
Equally deleterious to economic health is the recent vogue of cutting interest
rates
to near zero and holding them there for a sustained period.
It is far from clear that near-zero short-term interest
rates
(as compared to just low interest rates) have much additional effect in encouraging firms to create jobs when powerful economic forces make them reluctant to hire.
But prolonged near-zero
rates
can foster the wrong kinds of activities.
Likewise, money fleeing low US interest
rates
(and, more generally, industrial countries) has pushed up emerging-market equity and real-estate prices, setting them up for a fall (as we witnessed recently with the flight to safety following Europe’s financial turmoil).
If the Fed were to accept the responsibilities of its de facto role as the world’s central banker, it would have to admit that its policy
rates
are not conducive to stable world growth.
Policy would still be accommodative if the Fed maintained low interest
rates
rather than the zero level that was appropriate for a panic.
Politicians will not sit quietly, however, if the Fed attempts to raise
rates.
Their thinking – and the Fed’s – follows the misguided calculus that if low
rates
are good for jobs, ultra-low
rates
must be even better.
Emerging studies on the risk-taking and asset-price inflation engendered by ultra-low policy
rates
will eventually convince Fed policymakers to change their stance.
The global economic environment – characterized by massive amounts of liquidity and low interest
rates
stemming from unconventional monetary policy in advanced economies – led most emerging economies to use their policy space to build up existing drivers of growth, rather than develop new ones.
Across "euroland" monetary policy was focused on the harmonization of interest rates, not on their level.
Deflation increased real interest
rates
and curbed economic activity, thereby setting off another round of deflation, and so on.
With interest
rates
reaching almost zero, this liquidity trap has paralyzed Japan's monetary policy.
In much of the world, aging societies and declining birth
rates
mean that the days of abundant labor are coming to an end.
Yet there are reasons to fear that there will be such a decline: slower growth means fewer competitive pressures for heightened efficiency; diminished risk tolerance means a lower appetite for innovation and experimentation; and nominal interest
rates
pinned at the zero lower bound means that society’s savings cannot be used effectively.
In most advanced economies and many emerging economies, investment
rates
fell sharply in the wake of the 2008 global financial crisis, and have still not returned to pre-crisis levels.
To do so, they have relied on near-zero interest
rates
and unconventional measures like quantitative easing to stimulate growth and job creation.
The US is a large and powerful country and, when danger hits, investors buy up federal government debt – driving down interest
rates.
Hard budget cuts and sky-high interest
rates
could be avoided.
Korea, the last Asian economy to collapse is now doing best with double-digit growth and interest
rates
not much above American levels.
Asia, Mexico and Brazil adopted and applied IMF strategies; they raised interest
rates
to the sky to bring about stable currencies; only with stability did they bring down
rates
as investor confidence returned.
Money started to come back, pushing exchange
rates
nearly up to pre-crisis levels.
On one hand, “growing material wealth and advances in science and technology” have enabled unprecedented
rates
of development.
The longer the policymaking impasse persists, the greater the stall-speed risk for an economy that already has an unemployment crisis, a large budget deficit, many underwater mortgages, and policy interest
rates
floored at zero.
So not only has the MPC kept interest
rates
at a rock-bottom 0.5% since 2009, but policy has been loosened further by the Bank of England’s so-called “quantitative easing” – that is, expanding the monetary base by the stroke of a pen in the hope of reinvigorating domestic credit markets.
To the extent that tolerance of above-target inflation also reflects a desire to erode the real value of public and private debts, market interest
rates
could soar, leaving indebted governments and households in even greater trouble.
In Kano – which currently has one of the lowest routine immunization coverage
rates
in Nigeria, with less than 40% of children vaccinated – we are working to improve primary health care and expand the scope of routine immunization.
To explain this, observers pointed to the nimble response of the Bank of England (BoE), which cut interest
rates
to prevent any softening of demand.
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