Sentences with phrase «borrowing by lowering interest rates»

Not exact matches

Enticed by low interest rates, Canadians borrowed heavily from lenders and ultimately juiced bank profits.

Even though our activities are likely to result in a lower national debt over the long term, I sometimes hear the complaint that the Federal Reserve is enabling bad fiscal policy by keeping interest rates very low and thereby making it cheaper for the federal government to borrow.

The MPC launched the Term Funding Scheme to make sure that the lower levels of interest rates now set by the Bank of England are reflected in the costs commercial banks charge households and companies to borrow funds.

There is no evidence that the policy, which encourages borrowing by keeping long - term interest rates low, has inflated dangerous bubbles in the stock market and residential real estate, she said.

The amendment provided for (i) an immediate reduction in the interest rate margin applicable to the loans outstanding under the Senior Secured Term Loan Facility from (a) 3.50 % to 3.00 % for LIBOR borrowings and (b) 2.50 % to 2.00 % for base rate borrowings, (ii) an immediate lowering of the LIBOR floor for loans outstanding under the Senior Secured Term Loan Facility from 1.25 % to 1.00 % and (iii) the borrowing of incremental term loans, the proceeds of which were used to repay the outstanding loans of lenders that did not consent to the repricing amendment (the Non-Consenting Lenders) in an aggregate principal amount of approximately $ 99.6 million, which is the amount of loans held by such Non-Consenting Lenders on February 8, 2013.

Lower interest rates might have provided a bit more support, but would have done so partly by encouraging people to borrow yet more money, thus adding to the risks.

Achievement of these goals was considered by the HRC as very challenging, even aggressive, given the expected modest economic growth for 2007 for the financial services industry, the impact and duration of the on - going flat / inverted yield curve (meaning short - term interest rates that are virtually equal to or exceed long - term interest rates, thus lowering profit margins for financial services companies that borrow cash at short - term rates and lend at long - term rates), potentially higher credit losses, fewer available high - quality, high - yielding loans and investment opportunities, and a consumer shift from non-interest to interest - bearing deposits.

Each percentage point of additional borrowing costs with current abnormally low interest rates increases costs of funding by $ 680 billion.

Arbitrageurs made billions by acting as financial intermediaries making income on the margin between low yen - borrowing costs and high foreign - currency interest rates.

This reflects borrowers switching from loan products with higher interest rates, such as traditional fixed - term personal loans, to products which attract lower rates of interest, such as home - equity lines of credit and other borrowing secured by residential property.

Selling gold short has therefore been an alternative to the «yen - carry» trade which saw market participants fund investments in various markets by borrowing yen (at almost zero cost due to the low interest rates in Japan) and selling it for other currencies, mostly US dollars.

Not that much higher because they're still secured by a home (the home as collateral), the interest rates people typically pay on them are lower than those of nearly any other sort of borrowing.

By the end of the year, the Fed had reduced interest rates to near zero and had launched controversial programs, such as buying bonds to lower mortgage and other long - term rates to spur borrowing.

Low interest rates encourage borrowing by making credit cheap.

The banks are trying to win back their losses by arbitrage operations, borrowing from the Fed at a low interest rate and lending at a higher one, and gambling on options and derivatives.

Benchmark interest rates, such as the LIBOR and the Fed funds rate, affect the demand for money by raising or lowering the cost to borrow — in essence, money's price.

The federal government would borrow on behalf of this Crown Corporation by issuing 30 - year bonds at historical low interest rates (around 2 %).

The Liberals embraced the recommendations of many economists, including ourselves, that with a sustainable fiscal situation, they could strengthen long - term economic growth by undertaking infrastructure spending financed by borrowing at historically low interest rates.

Missing from this piece is the fact that the interest rate on the amount borrowed from the pension funds would be lower than that charged by outside lenders, or payable on bonds.

Mr. Cuomo's budget proposal would let municipalities and school districts address rising pension costs by borrowing more now — which will mean paying more later on, as interest rates, now at historic lows, are sure to rise.

The refunding, which is similar to refinancing a home mortgage, pays off existing debt by borrowing money at a lower interest rate.

LendUp also rewards you for paying on time and repeat business by allowing you to borrow more as well as lowering your interest rate on your loans.

Backed by the funds you have on deposit, its a secure way to borrow money at a low interest rate.

On the one hand, the money you can borrow on your home will probably be of a lower interest rate than most other forms of loans and this can help you to reduce your monthly repayments by using the house money for clearing more expensive debt.

Unfortunately, interest rates are extremely low right now as the government is trying to spur growth by making it cheap to borrow.

Benchmark interest rates, such as the LIBOR and the Fed funds rate, affect the demand for money by raising or lowering the cost to borrow — in essence, money's price.

Buy that same home with a 15 - year loan at today's 2.86 % (the shorter time you borrow the money, the lower the rate), and your monthly payments balloon to $ 1,710 — but you'll pay only $ 43,306 in interest by the time you're done.

Purchasing mortgage points can save you a lot of money over the whole life of a mortgage loan and can also provide you with lower monthly payments by granting a reduction on the interest rate you have to pay for the money borrowed.

Lower interest rates stimulate economic growth by making it cheaper for businesses and consumers to borrow money to pay for things like office equipment and new cars.

The «normal» way to stimulate an economy is to vary the price of money by lowering interest rates thereby encouraging borrowing to stimulate growth and spending.

Refinance Loans If you have already borrowed your student loan funds, then you may be able to lower your rate of interest and / or your monthly payment amount by refinancing through a private loan or by obtaining a consolidation loan.

Because mortgages are traditionally the least expensive form of borrowing (because the loan is secured by your house), you might be able to borrow at a low interest rate to repay your higher interest rate credit card and other debts.

Besides great chances of approval, competition among lenders may significantly reduce your borrowing cost by lower interest rates on unsecured loans and prolonged durations that result in smaller amounts you have to pay each month.

Household debt levels have hit record levels in recent years and housing markets have boomed, helped by low interest rates that have allowed consumers to borrow cheaply.

Credit unions are saving schemes run by their members which also allow you to borrow twice more than you have saved, at a low interest rate.

If you have been paying lower interest below the prime rate of 3 % while 5 year fixed rates have been around 3 % or higher your savings can exceed any extra cost of borrowing in the final 12 - 24 months of your mortgage term if rates were to rise by.25 -.5 % as predicted.

«Furthermore, among the joint applicants with a lower credit score below 740, for whom mortgage interest rates are most sensitive to credit scores, more than 25 % could have significantly reduced their borrowing cost by having the individual with a higher credit score apply.»

I'm attracted by the low interest, but scared of having too many credit cards and losing track of payments, or worse, adversely - affecting my credit rating or future borrowing potential by having «too...

By changing the official reason for borrowing, you have access to lower overall interest rates, leading to a great financial gain that can really pay off over the course of several years.

Of course, these relatively low interest rates mean that companies that are seen as higher risks by investors are now able to borrow at a lower cost that has been historically possible.

Federal student loans, which are funded by the federal government, offer perks such as low, fixed interest rates and income - based repayment plans — but the amount you can borrow each year is limited.

The loan amount will be determined by your savings, you'll be able to borrow up to 100 % of your savings at a low interest rate.

We recently calculated that by lowering interest rates for people who have a track record of repaying loans on time, LendUp saved its California borrowers over $ 9 million in 2015 (compared to what they'd have paid if they borrowed from some of the nation's largest payday lenders).

Although home buyers can negotiate lower mortgage rates than those posted by the banks − Mr. Sammut said that five - year fixed rates are generally between 3.59 per cent and 3.69 per cent − the increases to posted rates suggest that borrowing costs are rising to reflect stronger economic activity, rising inflation and higher interest rates.

As CIBC economist Avery Shenfeld noted recently, much of the growth in household borrowing is coming from those who already have high debt burdens, not «less indebted families getting drawn to the punch bowl by the promise of low [interest] rates.»

One discount point comes at a cost of one percent of the borrowed loan amount, and typically lowers a mortgage lender's quoted interest rate by 25 basis points (0.25 %).

By pledging their savings (shares) or stock, members can borrow the money they need at a very low interest rate and build excellent credit history.

More importantly, says a Harvard study, «The current rate spread is an important influence on mortgage choice, as would be implied by a model in which borrowing - constrained households seek low rates in order to maintain the level of current consumption, or to increase the size of the house they can buy when constrained by bank limitations on mortgage interest - to - income ratios.»

«And having a strong credit history and a high credit score can also lower your cost to borrow by qualifying you for a lower interest rate.»

Because interest rates for mortgages are lower than interest rates for nearly any other type of loan, you might save money by borrowing against your home instead of accessing other, more expensive credit products (like an auto loan or a personal loan).