Rates
in sentence
8030 examples of Rates in a sentence
And there is now less reason to worry that a massive fiscal-stimulus program will push up the dollar and force the Fed to raise
rates.
Because the US Senate’s budget-reconciliation rules require all tax cuts to be revenue-neutral after ten years, Republicans will either have to cut tax
rates
by far less than they had originally intended, or settle for temporary and limited tax cuts that aren’t paid for.
It is the one policy that will always stimulate nominal demand, even when other policies – such as debt-financed fiscal deficits or negative interest
rates
– are ineffective.
If our only way out is interest
rates
negative enough to re-stimulate that rapid growth, we are doomed to repeat past mistakes.
And if Takahashi had stimulated the economy with negative interest rates, and then sought to reverse that policy, he would have met the same end.
Indeed, inflation was finally crushed in the early 1980s, when central banks raised interest
rates
to whatever level was required to constrain nominal demand, even if it led to high transitional unemployment.
More recently, technological advances have become an increasingly important driver of structural transformation, with information technology and job automation reducing wage
rates
for low-skill jobs and further eroding the political and market power of organized labor.
As a result, while central bankers before the 2008 financial crisis viewed themselves as heroes in a battle against inflation, they increasingly found themselves offsetting structural deflationary pressures by setting interest
rates
low enough to stimulate credit booms.
The best way to achieve that is not through the current mix of ultra-low interest
rates
and quantitative easing.
Likewise, the People’s Bank of China (PBOC) has provided monetary support, gradually lowering interest
rates
and reserve requirements.
Interest
rates
will have to be slashed, and the ECB will have to follow up with large-scale asset purchases like those recently announced by the Swiss National Bank.
Interest
rates
around the world are poised to rise.
Short-term
rates
have gone so low since the worldwide recession of 2001 - 1% and 2%, respectively, in the United States and the Eurozone, and practically zero in Japan - that a strengthening world economy will force central banks to tighten the monetary reins.
Australia's central bank has already been raising
rates
since May 2002, and Great Britain's since November 2003.
Given the tendency of central banks to change interest
rates
gradually, any change of direction likely means more changes in the same direction later.
In theory, when interest
rates
go up, there is reason to believe that asset prices will go down.
The higher interest
rates
go, the better are investments in bonds, which compete with investments in other assets such as stocks or homes.
Higher interest
rates
also raise the cost of borrowing to buy these assets, which may diminish demand for them, exerting downward pressure on their prices.
When interest
rates
fall, the opposite effect on asset prices may be predicted.
In fact, the history of the stock market's reactions to changing interest
rates
is mixed.
But then the NASDAQ index fell 22% over the following year, although the Fed continued to cut interest
rates
aggressively.
Does that experience suggest that the NASDAQ index will drop sharply if the Fed raises interest
rates
on June 30?
By contrast, the Fed is widely expected to raise
rates
at the end this month, so there will be no surprise element.
But, there are reasons to believe that higher interest rates, even though expected, can have a negative impact on home prices.
When interest
rates
go up, these payments will (when the rate is variable) also go up, possibly becoming unsustainable.
Low interest
rates
did not cause the bubbles.
But declines in home prices will not occur quickly when central banks begin to raise interest
rates.
In Mumbai, for example, enrollment
rates
surpass 95%, but only a small fraction of students graduate.
The benefits of a monetary union based on a stable macroeconomic framework and governed by an independent central bank are manifest: the euro area has enjoyed low inflation and low interest
rates
for much of the last decade, a boost in trade and investment, and rapid integration of financial markets.
This activism comes mainly in response to the latest alarming figures on youth unemployment in southern Europe, with sky-high
rates
of joblessness widely regarded as politically unacceptable.
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