Sentences with phrase «by the low interest rate policy»

This has undoubtedly been caused by the low interest rate policy of the Fed, which depressed returns of such funds.

«The governor of the Bank of Canada made an early year commitment to Canadians that the central bank would stand by its low interest rate policy into 2010,» says Phil Soper, CEO of Royal LePage Real Estate Services.

Not exact matches

Those federal rules, which double down on restrictions adopted in 2014 and stern warnings to lenders issued by OSFI earlier this summer, require banks to qualify borrowers at higher interest rates, impose additional limits on mortgages for buyers with small down payments, and compel financial institutions to share the risk by taking out insurance policies on low - ratio mortgages.

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.

It achieves that by raising or lowering its policy interest rate, which influences other interest rates such as what you'll pay on your mortgage or auto loan, and the return you'll get on the balance in your savings account.

Australian shares were down 0.6 % after the Reserve Bank of Australia's policy board decided to cut its benchmark interest rate by 25 basis points to an all - time low of 1.50 %, as expected.

I think that we face a structural problem in monetary policy and that is when recession comes we lower interest rates by... three percentage points.

The most important policy action for mitigating the damage of a recession is for the central bank to keep interest rates low, according to the respondents, followed by increasing spending on transportation and other infrastructure projects.

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.

STANLEY FISCHER: So let me just — I thought a little with R - star being so low — I sort of made — a nuisance of myself by saying, it's not only monetary policy that affects the interest rate.

The reason Keynesianism got such a boost post-crisis was not for any real - world examples of its success — the list of its failures, by contrast, is lengthy — but because of the assertion, accepted far too quickly with far too little evidence, that monetary policy, at the fabled Zero Lower Bound (interest rates of near zero) had lost its effectiveness.

The Federal Reserve has lowered short - term interest rates by 100 basis points in a month — an action they describe as a «rapid and forceful response» of monetary policy both to the changing circumstances and the changing behaviour of the US economy.

It's true that demographic forces are leading to slower growth in the labour force, which reduces the neutral interest rate in the economy and increases the chances that monetary policy will be constrained by the lower bound on interest rates.

«This program is intended to support the other measures by additionally lowering long - term interest rates... and at the same time it gives a signal that monetary policy is committed to its goal of stable prices.»

The investment world is skewed by the latest round of monetary policy experimentation by the Fed, including years of artificially low interest rates and trillions of dollars in «massive asset purchases,» to paraphrase former Fed Chairman Ben Bernanke.

Carney's first year in office has been defined by a «forward guidance policy,» which kept rates low and closely tied an interest rate rise to a drop in unemployment.

The lower the interest rate the smaller the difference will tend to be between the spot price and the prices for future delivery, so in a world dominated by ZIRP (Zero Interest Rate Policy) the differences between spot and futures prices will generally be smaller thainterest rate the smaller the difference will tend to be between the spot price and the prices for future delivery, so in a world dominated by ZIRP (Zero Interest Rate Policy) the differences between spot and futures prices will generally be smaller than usrate the smaller the difference will tend to be between the spot price and the prices for future delivery, so in a world dominated by ZIRP (Zero Interest Rate Policy) the differences between spot and futures prices will generally be smaller thaInterest Rate Policy) the differences between spot and futures prices will generally be smaller than usRate Policy) the differences between spot and futures prices will generally be smaller than usual.

Yet somehow, despite policy failures that are made obvious by the lowest interest rates ever recorded in human history, a persistent narrative still dominates financial markets: all - knowing, omnipotent central bankers are still in full control of the situation and will do «whatever it takes» to maintain order.

The combination of low levels of ES funds and the cash rate remaining close to its target suggests a couple of conclusions: first, the market players involved with RTGS have adapted well to operating in the new environment; and second, participants have reasonable confidence about the availability of cash near the interest rate announced by the Reserve Bank as its policy target.

In Europe, the European Central Bank reduced its official interest rate in June by 50 basis points to 2 per cent; the Bank of England also lowered its policy rate in July by 25 basis points to 3 1/2 per cent; and official interest rates in Sweden declined by 75 basis points to 2 3/4 per cent in moves of 50 and 25 basis points in June and July.

This may give you greater potential for growth compared to traditional universal life policies, where the interest rate is declared by the insurance company, particularly in a low - interest rate environment.

In the wake of a financial crisis associated with over-leverage, monetary policy can, by lowering interest rates, lessen the burden on the indebted sectors by shifting the burden in part to the net holders of interest - earning assets.

Elsewhere in the Asian region, Indonesia, Korea, Malaysia, the Philippines, Taiwan, Thailand and Hong Kong all lowered official interest rates, while Singapore announced that it too would ease monetary policy by lowering the target trading band for the Singapore dollar.

Although it now seems that the «zero lower bound» for nominal interest rates wasn't actually zero, it is not clear that the recent negative rates implemented by a handful of central banks in Europe offer some new vista of policy effectiveness.

After a long stretch characterized by ultra-low interest rates, slow growth, minimal inflation, cheap oil, and little policy progress due to a conflicted Congress, we are now doing a dramatic 180 degree turn to a lower tax, less regulation, pro-growth environment, with higher rates and higher inflation — a normalization of sorts.

After the unexpectedly rapid turnaround in monetary policy by the Bank of Canada — with July's increase in Canadian interest rates coming almost a year earlier than had been widely predicted only a few weeks earlier — the attention of market participants turned to Australia, where interest rates remained at record lows.

A lower neutral rate also makes it more likely that interest rates will be constrained by the effective lower bound, meaning monetary policy will have less scope to support income growth during periods of economic weakness.

Who wants to stop the current policy of robbing seniors by keeping interest rates artificially low?

We anticipate low Canadian interest rates, anchored by still low global inflation and broadly accommodative monetary policy.

The last two phases were caused, at least in part, by the Federal Reserve's interest rate policy: a strong coupling of rising returns stimulated by low rates, followed by an indication of decoupling when rates rose.

We live in a low - yield environment spawned by a «new normal» of worldwide monetary policy focused on stimulating with ultra-low or even negative interest rates and massive liquidity injections into the financial system.

But with interest rates driven to dramatic lows by Federal Reserve policy, it's only a matter of time until the pendulum reverses course and bond investors will be forced to deal with a new landscape of rising interest rates.

For the past 7 years stocks have trended upward, enabled by the Fed's low interest rate policy.

When the Fed's interest rate policy is stuck at its zero bound, he argued that «a decline in inflation expectations drives up real interest rates and thereby increases the real cost of credit which can not be offset by simply lowering the fed funds rate.

These loans are secured by your ownership interest in the policy, so they may carry a relatively low rate of interest.

Many critics have complained that the easy money policy and low interest rates set by the US Federal Reserve have inflated a bubble in the global stock markets.

The Fund's investment team continues to believe that the current period of accommodative monetary policy by developed country central banks will eventually need to end, resulting in rising interest rates from current record low levels.

In this regard, the unconventional monetary policy has reinforced the recession by stimulating the private sector's money demand through pursuing an excessively low interest rate policy (i.e., the zero - interest rate policy).3

What Austrians call the higher - order stages of production, the stages farthest removed from finished consumer goods, are more interest - rate sensitive, and will therefore be given disproportionate stimulus by the Fed's policy of lowering interest rates.

And that includes the nation's savers who have had the rug completely yanked out from under them by the Federal Reserve's zero interest rate policy and the Fed's continuing effort to push bond yields to all time lows.

For example, if inflationary pressures were high and interest rates were moving up, the Fed could not predictably lower the Fed Funds rate by easing monetary policy.

Universal life policy costs have risen dramatically in recent years — some plans by as much as 40 % — in response to historically low interest rates so your older plan could be at a very favourable rate in comparison.

The policy's cash value is credited with an interest rate that is set by the insurance company — and that may change, but will never be lower than a set guaranteed minimum rate of interest.

A universal life insurance policy pays a rate of interest on the cash value (by law not lower than 2 %).

The only thing you can truly bank on in a non-guaranteed policy is the guaranteed interest rate disclosed by the insurance company, which is naturally much lower than the assumptive rate agents use.

Recent monetary policies and low interest rates, implemented by governments and banks, are pushing investors to cryptocurrencies that are not affected by changes in the traditional market.

The Construction industry has experienced a «correction» after experiencing exceptional performance in 2009 which was spurred by Canada's Economic Action Plan, historically low interest rates, the Vancouver Olympics and Feed in Tariff policies which support renewable energy projects.

In remarks at an economic conference in San Francisco sponsored by the Federal Reserve Bank of San Francisco and the Stanford Institute for Economic Policy Research on February 28, Federal Reserve Governor Donald Kohn said there was little reason to worry that current low interest rates may cause a potential bubble in the rate - sensitive housing market.

The administration can be counted on to offer near - term policies directed toward lowering interest rates and stimulating consumer demand, followed by the more dramatic changes that Bush campaigned on, including his much - touted large - scale tax cut.

Ryan discusses the death of Osama Bin Laden; Ryan reviews the economic news of the week; Ryan notices the correlation between increased home sales and interest rate drops; Louis notes we can't expect the housing market to be supported by further decreases in rates as they are already near historic lows; Ryan explains that interest rates change once every four hours; Ryan notes the difference between getting a quote and being locked in to an interest rate; Ryan advises the importance of keeping in touch with your mortgage lender; Louis notes that interest rates change a lot faster than home prices; Ryan notes that the consumer confidence was up, Ryan and Louis discuss the Fed's decision to keep interest rates where they are and to continue the $ 600 billion QE2 program; Ryan and Louis discuss the Fed's view that inflation is nascent; Louis notes that not only does the Fed not see inflation that exists but disclaims any responsibility for it; Louis asserts that there is a correlation between oil prices and Fed policy; Louis discusses Ben Bernanke's assertion that the Fed can't control oil prices but that they somehow can control the impact of higher oil prices on the rest of the economy; Louis also remarks on Bernanke's view of the dollar - the claim that a strong dollar can be achieved through the Fed's current policy as it is their belief that they are creating a sound economy and therefore a sound dollar; Louis notes the irony of the Fed chastising Congress» spendthrift ways — if the Fed did not monetize the debt, Congress could» nt spend; Louis noted that as Bernanke spoke the prices of gold and silver rose as it seemed that the Fed has no interest in cutting off the easy money; the current Fed policy will keep interest rates low; Ryan notes that the Fed knows that they can't let interest rates rise because of the housing mess; Louis notes that the Fed has a Hobson's Choice - either keep rates low or let interest rates rise and cut off the recovery.