Sentences with phrase «by raising interest rates»

However, it could also be that you had really good interest rates, then got in the bad habit of making only minimum monthly payments and companies responded by raising interest rates.
The central bank controls inflation by raising interest rates, which makes borrowing money more expensive.
Inflation should not be controlled by raising interest rates in order to slow the economy and wage growth.
The cheeky reporter observed that central banks had a track record of killing economic expansions by raising interest rates.
In response, the creditor can alter the terms of your agreement by raising your interest rates.
The reasoning behind this is that a loan with a 5 % down payment is considered high - risk, and they'll cover that risk by raising the interest rate accordingly.
It would avoid the risk of a tax giveaway that hurts the economy by raising interest rates and magnifying the deficit.
For example, a reduction in capital inflows can deflate asset bubbles and so discourage consumption through wealth effects, or such a reduction can lower consumption by raising interest rates on consumer credit, or even by encouraging stronger consumer lending standards.
And what if the economy heats up too fast and the Fed slams on the brakes by raising interest rates?
In late 2009, for example, Australia surprised the financial markets by raising interest rates at a time when most other countries were lowering rates.
Since retiring in 1992, my only losing year out of the last 17 was a 10 % loss in 1994, the year that Alan Greenspan surprised the market by raising interest rates very sharply.
In isolation, the inflation data imply that the Bank of Canada made a mistake by raising interest rates.
While Brazil and Indonesia have both been able to offset some of the effects of Bernanke's comments by raising interest rates (both countries increased their rates by 50 basis points in the past week), India can not afford to do the same, and has seen an outflow of capital as a result.
He argues everything depends on whether China rebalances its economy amid a sharp slowdown by raising interest rates and wages.
The FOMC will be able to increase short - term rates by raising the interest rate that we pay on excess reserves - currently 1/4 percent.
Some policymakers feel the central bank has already undercut its credibility by raising interest rates while inflation remains so weak.
I laugh and sometime sneer at those who think new Fed Head Jerome Powell will impose monetary discipline by raising interest rates at least up to the real rate of inflation and reduce the Fed's balance sheet according the schedule as laid out by Yellen.
It has already started in the U.S.: The Federal Reserve has responded to low unemployment by raising interest rates 3 times in the past year, and I expect another rate hike in December.
In the late 1970s he coped with the U.S. balance - of - payments deficit (stemming mainly from overseas military spending) and consequent the inflationary pressures by raising interest rates to 20 %, thereby plunging stock market and real estate prices.
Even Mr. Bernanke tells us tightening by raising interest rates is a long way off.
Canada wasn't the focus of the panel discussion the governor was participating in, but Carney did hint, in passing, that the BoC is willing to put up with higher than two per cent inflation in order to avoid hurting highly indebted Canadian households by raising interest rates too quickly.
The Fed takes away the punch bowl by raising interest rates
[1] On the contrary, the commentator noted, the Fed could have slowed the bubble by raising interest rates and boosting margin requirements on stock trading during the tech bubble.
In 1845, the Bank of England tightened its monetary policy by raising interest rates, which has a tendency to pop economic bubbles as capital is no longer as cheap as it once was and now higher - yielding bonds become more attractive to investors again.
Central banks control interest rates like a puppet on a string by raising interest rates or buying up bonds to increase the value of their currency, or lowering interest rates and selling bonds to decrease it.
By raising interest rates when the economy is doing well and the job market is strong, the Fed intends to head off inflation, which would reduce the buying power of the money you earn.
Third, after you get a fair rate quote, (Wait until after the rate quote or they may try to compensate their lost fee by raising the interest rate.)
The banks usually get quite a lot of the principal balance back off credit cards by raising interest rates (to the default rate) and by charging late fees, over-limit fees, etc..
When the government tried to stop the inflammatory growth of stocks and real estate by raising interest rates, it caused a severe plunge in the Nikkei index.
Crudely put, the theory states that when inflation rises above a prescribed level (typically around 2 %), central banks must respond by raising interest rates, which quells consumer demand and causes inflation to fall back to «acceptable» levels.
The Federal Reserve is in no hurry to slow down the economy by raising interest rates, but...
For one thing, central banks have become more likely to tap the brakes by raising interest rates and moving away from ultra-loose monetary policies.
Then the U.S. Federal Reserve declared war on inflation by raising interest rates.
That is, would expectations of outsized demand growth — of, say, 4 percent per year over the next four years in inflation - adjusted terms — generate undue inflationary pressures that would require the Federal Reserve to respond by raising interest rates, essentially killing off any actual growth that those expectations could generate?
So, actions today effect — by raising interest rates, will affect the economy down the road.
The Federal Reserve is in no hurry to slow down the economy by raising interest rates, but...
By raising interest rates to fight...
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