Sentences with phrase «at higher inflation rates»

the cost of tuition grew at a high inflation rate, but the second option allowed them to skip inflation on the bill side, but keep inflation regarding wages.

Not exact matches

«I can at most venture a personal judgment, based on some examination of the historical evidence, that the initial effects [on employment] of a higher and unanticipated rate of inflation last for something like two to five years; that this initial effect then begins to be reversed; and that a full adjustment to the new rate of inflation takes about as long for employment as for interest rates, say, a couple of decades.»

At any rate, India and Brazil will most probably have to raise their interest rates to reduce their high inflation, and to prop up their currencies to stem imported inflation pressures.

China's consumer inflation rate grew at its fastest pace in six months in October as food prices rose, while producer prices accelerated to a near - five year high, exceeding expectations.

That's bad compared with the U.S. and the European Union, where the rates of inflation are 2.7 percent and 3.1 percent, respectively, but economists not affiliated with the government say the real figure is at least twice as high.

While markets deal with more volatility, higher rates and rising inflation, BMO Capital markets says it has a strategy to help you sleep at night.

However, the softness in economic data, particularly as it relates to inflation, coupled with market expectations that the first Fed rate hike won't happen until well into 2016 have inspired at least a momentary burst in high - yield confidence.

Take a look at the top 10 highest - grossing R - rated movies of all time adjusted for inflation (to keep things on an even playing field):

While New Zealand's official cash rate is already at a record - low 2 % after the latest cut in August, it is still the highest in the developed world — a major draw for yield - hungry investors and a complication for the central bank as a higher kiwi further dampens imported - led inflation.

Higher inflation this year should push the Fed to raise the federal funds rate at a faster pace, which will have knock - on effect on interest rates and the bond market.

«Interest rates are not low enough,» Minneapolis Federal Reserve President Narayana Kocherlakota said at a Town Hall meeting in Montana, citing subdued inflation and «unacceptably high» unemployment as evidence.

Stocks trade at a high valuation on most metrics including relative to history, relative to interest rates, and relative to inflation.

And now that our careers are going, we're looking at maxing out two traditional 401Ks and two Roth IRAs this year, and we see the Roth IRA portion as a small hedge against rising future tax rates (or what I think is a bit more likely to happen — tax brackets that don't keep pace with inflation, so keep sucking in more and more people to higher brackets).

Long - dated Treasury yields early Thursday trade at the highest level in nearly a month, but shorter maturities saw a slight pullback in rates, as inflation expectations rose

So, the government could actually spend gazillions of dollars and set its rates at 0 % permanently (which might cause high inflation, but you get the message).

To expect the Fed to hold rates at current levels or just a quarter - point higher, in the face of those inflation figures, would seem to be asking a lot.

Recently, there has been some discussion, prompted by senior staff at the International Monetary Fund (IMF), that central banks might aim for high inflation — say 4 per cent — as a way of giving them more scope to reduce official interest rates in future downturns.

With inflation well below its longer - run goal and high unemployment, the FOMC decided at its March meeting to maintain a «highly accommodative» policy stance: a federal funds rate in a range of 0 to 25 basis points with forward guidance based on economic thresholds.

The biggest reason for this is the fact that interest rates were extremely high in the early 1980s to offset the high inflation that was seen at that time.

According to the minutes of the meeting, a 25 - basis point increase in the bank rate was fully factored in by the markets in the run - up to November's MPC meeting, and the interest - rate curve underlying the November Inflation Report projected interest rates at 1 percent by the end of the three - year forecast period, higher than the recent median estimates of economists polled by Reuters.

Driven by falling inflation, real interest rates in Asia are at relatively high levels compared with the US.

In a country where the unemployment rate is at a 20 - year low and industrial output is approaching historical highs, fueling inflation concerns, a 10 - year government bond yield of 1.5 % is totally inappropriate and will naturally spur people to buy real estate.

The tumult that saw global equity markets begin to fall at the beginning of February was triggered by U.S. jobs data that showed wages grew more than anticipated, raising worries that signs of higher inflation might push the U.S. Federal Reserve to increase interest rates more quickly.

At the same time, inflation and overheating became a concern due to the high rate of economic and credit growth.

@ agranny — short term gov bonds will do OK against inflation over time because you can reinvest maturing bonds relatively quickly at higher interest rates.

To test DR - CAPM on currencies, they rank a sample of 53 currencies by interest rates into six portfolios, excluding for some analyses those currencies in highest interest rate portfolio with annual inflation at least 10 % higher than contemporaneous U.S. inflation.

Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in June (3.2 %, stable compared with May), followed by energy (1.6 % compared with -0.2 % in May), services (1.4 % compared with 1.5 % in May) and non-energy industrial goods (0.7 % compared with 0.8 % in May).

Over the last decade or so, medical expenses have risen at a dramatically higher rate than inflation in general.

As usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weakness.

Students in every mainstream macroeconomics class, and that means almost all students, would have predicted, based on the nonsense they were learning, that the high deficits and high public debt ratios in Japan at the time, should have driven interest rates sky high, that bond markets should have stopped buying government bonds, that the government should have run out of money, and all the time that these disasters were unfolding, that inflation should have been be galloping towards hyperinflation.

I mean, think about areas outside of the United States that have high inflation rates, if you are a consumer there, in an oppressive regime, you want a way to have more control over your assets and not be at the whim of governments, so that's kind of how it all started.

As long as we see continued economic growth and inflation at current levels or higher, the current path of interest rate increases should continue.

As a general rule, countries attempt to keep inflation fixed at a rate of 2 percent as moderate levels of inflation are acceptable, with high levels of deflation leading to economic stagnation.

Additionally, a holder of a TIPS bond is impacted by inflation; if inflation rises the holder could receive both higher income and a higher principal payment at maturity (although it should be noted that TIPS typically have lower yields than conventional fixed rate bonds).

In a sign of both strong economic growth and the potential for higher inflation, small businesses reported that wage grew at the fastest rate in two years.

On the interest rate front, moreover, containing and reducing inflation over time will mean that we should be able, at some point, to look back to the current period as one of higher - than - normal interest rates.

«While yesterday's inflation numbers make a Fed rate rise in March more or less a done deal the prospect of additional rate rises later on in the year don't appear to be causing the same consternation in equity markets that they were a week ago, as US markets closed higher for the fourth day in succession, despite initially opening lower in the wake of the release of the data,» said Michael Hewson, chief market analyst at CMC Markets.

Domestic inflationary pressures, associated with higher wages and incomes, will lead to higher inflation for non-tradable goods and services but, at the same time, the gradual pass through of the initial exchange rate appreciation will lead to lower inflation for tradable goods and services (whose prices in foreign currency terms depend to a significant extent on global considerations).

If you can discount those cash flows at lower rate - because of slower inflation - then the value of those cash flows is higher.

The FOMC is expected to do everything it can to both push growth higher and to keep interest rates as low as they can, at least to a point, in order to keep inflation under control.

In contrast, inflation in the domestically oriented sectors of the economy has continued at a higher rate, with the non-traded component of the CPI increasing by around 4 per cent over the latest year, reflecting ongoing growth in costs and strong domestic demand pressures.

Importantly, when a preferred share is trading at a high current yield relative to the market yield, the investor receives a measure of protection from the impact of rising interest rates (or, if we're focused on real returns, the impact of rising inflation).

Argentina's central bank has also pushed up rates in recent days, and in South Africa, which faces a similar mix of weakening growth and high inflation, rate setters were under pressure to follow suit at their meeting Wednesday.

Despite a small decline in May, consumer confidence for the first five months of 2015 has been at a higher average level than at any time since May 2004.2 A relatively low unemployment rate and moderate inflation have helped maintain consumers» upbeat mood.

In response to the threat from inflation, which in August of this year reached a 16 - year high, Mexico's central bank sharply tightened monetary policy, increasing interest rates at seven consecutive meetings up to June.

To be sure, not surprisingly, market peaks in the higher inflation, higher rate environment of the late 1960s to the mid-1980s tended to occur at a lower valuation, not far from where we are today.

In 1987, a Brazilian economist, member of an international financial institution, admirer of the Chilean experience of Pinochet, made the confidential statement that the critical problem of Brazil at that moment, under the presidency of Sarney, did not lie on a too high inflation rate, as the officials of the World Bank spread.

In his seven years as president, President Houshmand has implemented many programs and initiatives to decrease the cost of higher education, including creating a $ 25,000, four - year bachelor's degree program, awarding more than $ 27 million annually in scholarship funds and waivers, and committing to capping tuition and fee increases at or lower than the rate of inflation for his tenure.

The Australian dollar surged above US80 cents after the Australian Bureau of Statistics released higher - than - expected core inflation data, crushing market expectations of a rate cut at next week's Reserve Bank of Australia meeting.

The Empire Center's Ken Girardin: «School budgets were approved at a record - high rate of 99.3 percent, adding to evidence that districts can live within a property tax cap set at either 2 percent or the prior year's average rate of inflation, whichever is less.»