Sentences with phrase «central bank interest rates so»

The ultimate question then is what kept central bank interest rates so low?

Not exact matches

Still, the central bank was reluctant to raise interest rates at the beginning of the year, and it remains so now.

And then the credibility that central banks have worked so hard to build since the double - digit interest rates of the 1980s would unravel.

Interest rates fell dramatically — the central bank rate has been essentially at zero since 1996 — so it cost nothing to borrow money.

Some policymakers feel the central bank has already undercut its credibility by raising interest rates while inflation remains so weak.

On July 12, the central bank finally did so, raising interest rates for the first time in seven years.

That fear has been «mitigated,» Poloz said, giving the central bank greater freedom to cut interest rates, if it feels the need to do so.

The Federal Reserve and Bank of England have started slowly raising interest rates, the European Central Bank has yet to do so.

Not only did the Zero Lower Bound turn out to be not so debilitating as all that — rather than work their will via interest rates, central banks took to injecting money directly into the economy via large - scale asset purchases — but it does not even seem to be the lower bound: central banks, notably in Europe, have successfully experimented with negative interest rates.

HERERA: As we just discussed, the central bank remains on track to raise interest rates three or four times this year, so says the head of the New York Fed.

World growth will remain low on average but negative in the UK and Europe; price inflation will remain sufficiently subdued for a while longer so as to impose no constraint on monetary expansion; central banks will sustain a regime of negative real interest rates and rapid monetary expansion; the risk of a eurozone collapse is off the table for now; finally, stock markets should continue to perform better than expected, even though the four - year old cyclical bull market is long by historical standards.

Because the stock of reserves is so high, central banks pay «interest on reserves» (IOR) to influence market interest rates.

The key interest rate is unlikely to change, but the central bank will have to explain how it could have been so off

So investors started to get nervous when there was speculation that the Federal Reserve, our country's central bank, might raise interest rates last week.

The Brexit vote impact is so important to the U.S. that it's part of the reason the Federal Reserve, our country's central bank, decided not to raise interest rates recently.

So, what's in the central bank's tool kit when interest rates are already very low?

Summers and other secular stagnation supporters argue that the level of interest rates needed to bring the economy back to full capacity is below the effective lower bound for monetary policy, so central banks are powerless to stimulate enough demand to use up excess supply.

If it is a new era of faster growth and new investment opportunities, then the equilibrium real interest rate (the rate at which monetary policy neither boosts nor restrains the economy) would rise, so the central bank would be right to move interest rates towards that level.

Their underlying worth is determined by the central banking system and the government, through a series of federal guarantees, the setting of interest rates and so on (money used to be backed by physical gold in Fort Knox, but that hasn't been the case since the 1970s).

This puts central banks in a position where they will have attempt to control interest rates not by discounting lending, but by buying debt from the government directly, so that markets don't price the new issuance at a level that would destroy the nation's ability to service a debt load that is growing larger all the time.

Certainly the Japanese, so its all being done so — with the — Donald Trump wanting to turn around the trade deficit, you can't help but say hey maybe they are actually onto something because they have an independent central bank well --(unintelligible) the independent central bank that goes upon its course based on what its seeing here you know based on domestic economic activity, while everybody else is setting it to international standards then tariffs become the — I guess the alternative especially when the feds is raising the interest rates and they're the only central bank really raising interest rates... I know... the bank of England went half a basis point, quarter basis point and they are project to go a quarter basis point tomorrow which we will see.

So you do talk about that the war on cash and also I would say it ties into negative interest rate policy because with the abolishing of cash it would allow central banks to more easily implement monetary policy especially if it goes into negative interest rates.

One thing Yellen and the Fed could change is their so - called forward guidance on when the central bank could start to raise short - term interest rates.

On July 12, the central bank finally did so, raising interest rates for the first time in seven years.

In doing so, the central bank outlined a timetable for reducing quantitative easing that, along with ultra-low interest rates, has helped banks stave off insolvency and buttress reserves.

So, when governments and central banks debase their currencies, as in the»70s, the 2000s, and create conditions where real interest rates are negative, gold flies in terms of the debased currencies, and then crashes back down if you get a Paul Volcker - type, and policy normalizes after a lot of pain, which this generation seems unwilling to take.

As inflation rises, so do central bank interest rates, which means that the cost of servicing their debt rises too.

Guofeng believes a PBOC digital currency could help negative interest rate methods, and so the central bank's R&D efforts should be sped up.