Sentences with phrase «central bank rate»

This bull market in stocks is unlikely to carry on indefinitely regardless of central bank rate manipulation and monetary stimulus.

In a nutshell, if central bank rate hikes are going to lead to higher long - term yields, investors will want to shorten the duration of their bond holdings.

Essentially no net gains, on average, have occurred during periods of strong international agreement in the form of either rising long - term interest rates or rising central bank rates.

In a world of high - frequency trading, central bank rate manipulation and cross-border fund flows, fundamental value often gets pushed to the back burner.

In part one we saw how central bank rates influence the yields on investments such as government and corporate bonds.

There is a growing air of anticipation across financial markets ahead of the European Central Bank rate decision and press conference later in the day.

Do not conclude that because long bonds have a higher duration that they will experience much larger changes in value when Central Bank Rates rise or fall.

First, currency movements have been following some unusual patterns — for example, rising after central bank rate cuts (Japan, Australia; typically, we expect currency values to fall after rate cuts) and jumping around here in the US with more volatility than usual, highly sensitive to winks and nods from our Fed about their next rate move.

Central bank rate setting and bond buying is only part of the picture.

The graph below shows the percentage of countries where central bank rates were higher than 6 months ago (therefore highlighting only periods where policies were actively getting tighter).

The U.S. Federal Reserve raised interest rates this Wednesday December 14, 2016 by only a quarter - point — from 0.50 % to 0.75 %, but now, for the first - time since 2007, Canada will have a lower central bank rate than its southern neighbour.

They might become downright enamored when real central bank rates turn positive.

As of now, we are clearly well within these limits but it is foolish to assume that the inflation target can be increased to any level while central bank rates still remain at zero.

But because worries about global economic growth, inflation and the threat of central bank rate hikes are one catalyst for the climb of bond yields, some analysts worry that the move higher may prove sustained and inflict damage to the world's biggest economy.

A softening in the euro zone's strong growth momentum and still - subdued inflation have prompted investors to push back their European Central Bank rate - hike expectations.

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

Sterling trod water after falling through the $ 1.36 line in the previous session as investors further reduced bets of a central bank rate hike next week.

Consumer price index (2000 = 100) Central Bank rates (various sources other than OECD as of mid-July 2007) Purchasing power parities, % change

But with the Bank of Canada signaling Wednesday it won't be raising rates — its neutral stance could even mean lower rates — consumers can safely slide back into variable mortgages tied to prime which tracks the central bank rate.

This may matter disproportionately given that most are mortgaged up to their eyeballs on such low rates with little understanding how high that can make monthly payments jump if the central bank rate goes up even a bit.

For example, Czech (Shiller PE 8.9, central bank rate 0.05 %), United Kingdom (Shiller PE 14.8, central bank rate 0.25 %), or Poland (Shiller PE 10.1, central bank rate 1.5 %) stand out as more interesting than the U.S. (Shiller PE 29.5, central bank rate 0.75 %)[2][3].

A print below 235K in the monthly Non-Farm Payroll report may dampen the Greenback rally as investors are forced to reassess their IR expectations and extend assumptions on the timing of a Central Bank rate adjustment.

Rates for new fixed - rate mortgages also ticked up in anticipation of the central bank rate hike.

While there is notable variation around these averages, it's clear that rising interest rates - whether focusing on market interest rates or central bank rates - create a headwind for investors.

But it's clear from the historical results that essentially all of the gains that have occurred in the EAFE Index, on average, have occurred when long - term rates and central bank rates were falling or unchanged in a majority of developed countries.

Negative returns, on average, have occurred during periods where long - term interest rates and central bank rates were both rising in the majority of countries.

Returns are strong - more than 20 percent over the following year - in cases where a growing number of long - term interest rates and central bank rates are falling or are unchanged.

That was the reason for (a) the home reno tax credit, (b) $ 17 billion in stimulus spending in eight months, (c) a $ 56 billion runaway deficit and (d) a central bank rate of 0.25 % leading to mortgages at 2 % and young couples borrowing their brains out.

For example, Czech (Shiller PE 8.9, central bank rate 0.05 %), United Kingdom (Shiller PE 14.8, central bank rate 0.25 %), or Poland (Shiller PE 10.1, central bank rate 1.5 %) stand out as more interesting than the U.S. (Shiller PE 29.5, central bank rate 0.75 %)[2][3].

Given the broad nature and speed of the price increases, market participants are contemplating the timing of a central bank rate increase.

Even if this is true, what's the motivation for posting libor rates so much higher than central bank rates?