Rates
in sentence
8030 examples of Rates in a sentence
They suggested that a UK freed of burdensome EU regulations could offer a more business-friendly environment and lower corporate tax rates, and thus become a magnet for foreign investment.
Sterling’s substantial depreciation, moreover, augurs a significant rise in inflation, which means that the BoE will have to start raising interest
rates
sooner rather than later.
Reagan had four key economic goals when he assumed office in 1981: reduce inflation, reduce high personal tax rates, reduce the size of government, and reduce regulation of the private sector.
Faced with high inflation, Thatcher backed a monetarist approach that supported high interest
rates
and succeeded in sharply reducing inflation.
Before the crisis struck in 1998 he put in place measures giving him room to manipulate liquidity and interest
rates.
On the other hand, Italy's economy as a whole is stagnant: in the last ten years Italy has been growing more slowly than the median in Europe, which is already seeing much lower growth
rates
than the United States.
When a man works and marginal tax
rates
are very high, the wife very often prefers to stay at home.
Instead of bowing to polarization and paralysis, policymakers should be promoting growth- and productivity-enhancing infrastructure investments, funded at exceptionally low interest rates, scaling up labor-market reforms, and working to address the growing income and wealth inequality that is increasingly limiting access to economic opportunity.
Welcome to the Era of IncompetenceTwo diametrically opposed scenarios exist for what will happen to global real interest
rates
over the next generation.
Those who predict generally low interest
rates
over the next generation point to rapid growth of productivity and potential output in the world economy.
They point to the fact that the world's major central banks - the Federal Reserve, the European Central Bank, and the Bank of Japan - have so firmly established their anti-inflation credibility that the inflation risk premium has been wrung out of interest
rates.
Believers in low interest
rates
also emphasize shifts in income distribution in the United States away from labor and toward capital, which have greatly boosted firms' resources to finance investment internally and reduced their dependence on capital markets.
With competition strong across the economy, they say that we can look forward to a generation of relatively high asset prices and relatively low real interest
rates
worldwide.
By contrast, those who predict generally high real interest
rates
over the next generation point to low savings
rates
in the US, high spending driven by demographic burdens in Europe, and feckless governments running chronic deficits and unsustainable fiscal policies.
They also cite investment opportunities in emerging markets, and make the obvious point that if China and India stay on track, their economies' relative weight in the world will double in the next decade or so, as rapid real growth is accompanied by appreciation in their real exchange
rates.
Sooner or later, the Chinese and Indian central banks' desire to hold down exchange
rates
to boost exports and their rich citizens' desire to keep their money in accounts at Bank of America will be offset by the sheer magnitude of investment opportunities.
One could emulate J.P. Morgan, whose standard response to questions about stock prices, bond prices, and interest
rates
was to say simply, "The market will fluctuate."
Another alternative is to recall the late Rudi Dornbusch, who taught that any economist who forecasts interest
rates
based on fundamentals is a fool, because fundamentals are complex and unstable, shifting suddenly and substantially.
In forecasting interest
rates
one is engaged not in examining fundamentals, but in predicting what average market opinion expects average market opinion about fundamentals to be.
So let me place my bet - which I think is only 60% likely - and say that my best guess is that world real interest
rates
will be high over the next generation, and that current bond prices (and real estate prices) are not sustainable.
The arguments for low interest
rates
seem to me to require a degree of government competence that is unlikely, given political parties' current positions and the existing structure of the institutions that make fiscal policy.
The Fed is expected to start raising
rates
next week and more in the coming months.
What if the stock market is not scared off by the prospect of higher interest
rates?
Then the going will be much rougher; first interest
rates
will rise a lot and then, on top, the stock market will tumble.
High
rates
and a deep fall of stocks - 20 or 30% - will surely put the US economy close to zero growth or worse.
That limits the fall-out from higher interest
rates
and stock price declines.
If things get too rough, the Fed will cut
rates
back.
On the economic front, Trump’s trade policies will become even less popular in the months ahead as the American economy cools from the “sugar high” of the corporate tax cut, as growing uncertainty about global trade policy hamstrings business investment, and as both the budget deficit and interest
rates
rise.
Moreover, sluggish wage growth implies that inflation is not reaching the US Federal Reserve’s target rate, which means that the Fed will have to normalize interest
rates
more slowly than expected.
Lower long-term interest
rates
and a weaker dollar are good news for US stock markets, and Trump’s pro-business agenda is still good for individual stocks in principle, even if the air has been let out of the so-called Trump reflation trade.
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