Sentences with phrase «expectations about inflation»

Interest rates change in response to a number of things including revised expectations about inflation, and such changes in the prevailing level of interest rates affects the value of all outstanding bonds.

The bond markets are extremely active, with interest rates constantly changing in response to a number of factors including changes in the supply and demand of credit, Federal Reserve policy, fiscal policy, exchange rates, economic conditions, market psychology and, above all, changes in expectations about inflation.

Longer duration bond returns should reflect expectations about inflation.

The closely watched 10 - year yield topped 3 per cent last week for the first time since 2014, on the back of rising expectations about inflation and rates.

Another class of theories argues, with some circularity, that inflation is determined by expectations about inflation.

The model on which it was based is a marvel of restrictive assumptions: an economy that is closed to trade, expectations about inflation that are essentially myopic, interest rates that are largely impervious to the demand for credit and investment that is largely impervious to interest rates.

ECB executive board member Benoit Coeure said the bank was working hard to prevent public expectations about inflation from becoming entrenched «on either side» — neither too high nor too low.

During a Saturday session at the symposium, such a slump in expectations about inflation and about other aspects of the economy was cited as a central problem complicating central banks» efforts to reach inflation targets and dimming prospects in Japan and Europe.

Not exact matches

There also was concern around the table about what a faster drop in value would do to inflation expectations.

Given the fragile nature of price expectations and the importance of getting actual inflation back towards 2 1/2 per cent relatively quickly to reinforce the stability of price expectations, the response of policy, even with the benefit of hindsight, seems about right (Graph 3).

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If, as I have indicated, the U.S. growth and inflation outlooks have not changed notably, then why have expectations about U.S. monetary policy shifted so much?

We would not be too fretted if actual inflation moves about a bit over the short term, provided price expectations do not change (i.e. we stay on this short - run curve).

Such an assessment focuses on analyzing the extent to which longer - run inflation expectations remain well - anchored, and on learning more about how agents update and revise their expectations in response to new information.»

About the Survey of Consumer Expectations The SCE contains information about how consumers expect overall inflation and prices for food, gas, housing and education to beAbout the Survey of Consumer Expectations The SCE contains information about how consumers expect overall inflation and prices for food, gas, housing and education to beabout how consumers expect overall inflation and prices for food, gas, housing and education to behave.

The result is very low long term real rates, sluggish growth expectations, concerns about the ability even over the fairly long term to get inflation to average 2 percent, and a sense that the Fed and the world's major central banks will not be able to normalize financial conditions in the foreseeable future.

Mishkin noted «I am less optimistic about the prospects for core PCE inflation to move much below 2 % in the absence of a determined effort by monetary policy,» adding that «a substantial further decline in inflation would require a shift in expectations, and such a shift could be difficult and time - consuming to bring about.»

For intermediate - and longer - term bond yields, it's all about inflation and growth expectations.

That could mean investors are moving money out of stocks and into bonds in anticipation of disappointing earnings; or that foreigners who are worried about their own economies are looking for a safer haven in the U.S.; or that expectations of future inflation have declined, allowing long - term interest rates to come down a little.

Inflation expectations remain well anchored at about 2 per cent.

And then we've talked about elevated media inflation is our expectation right now.

Monetary policy: continued investment recovery, unemployment and inflation expectations are key; energy prices less so «The year - on - year rate of increase in the CPI is likely to be about 0 percent for the time being, due to the effects of the decline in energy prices.»

The long end of the curve when talking about US Treasury bonds is all about inflation expectations.

This is why Mario Draghi, the central bank president, and other top central bankers talk a lot about «inflation expectations.»

The yields on these bonds reflect investor expectations about many things, such as future growth rates and inflation.

As a result of what happened during just one of the past twenty decades (the 1970s), most people now believe that a large rise in «price inflation» or inflation expectations is needed to bring about a major rally in the gold price.

Wage bargaining generally may not be very responsive to unemployment; wage bargains in a particular leading sector may reflect conditions in that sector, but then be transmitted, through concerns about relativities, into other sector s which experience quite different conditions; wage negotiator s may have unduly high expectations of future inflation in mind when striking their bargains.

While the inflation impact from higher oil prices and commodity prices in general, continue to pump up inflation expectation and push bond yields higher, keep in mind that much of the recent spike in Yields is about as much about supply as it is about inflation.

Confidence about Britain's economic recovery has been dented, with the Bank of England lowering its growth forecast and raising expectations of inflation.

Interestingly, the committee's conclusion with respect to exit exams does not pick up on the full report's emphasis on the importance of the design features of incentive systems, which include warnings that tests aimed at ensuring minimum competency may lower expectations, and concerns about both the potential narrowing of the curriculum and the tendency for score inflation on a known test.

The monetary authorities are no doubt concerned about inflation (the eurozone rate is above the ECB's target; they held off from making a rate cut; the Fed, despite focusing on core inflation rates, no doubt has also noticed the increase in inflation expectations).

And if you look at a common gauge of future inflation expectations — the difference between the yield on long - term Treasury bonds and that of Treasury Inflation - Protected Securities, now about 1.8 to two percentage points — investors apparently believe inflation will continue to mosey along at a relatively sluggish rate well into thinflation expectations — the difference between the yield on long - term Treasury bonds and that of Treasury Inflation - Protected Securities, now about 1.8 to two percentage points — investors apparently believe inflation will continue to mosey along at a relatively sluggish rate well into thInflation - Protected Securities, now about 1.8 to two percentage points — investors apparently believe inflation will continue to mosey along at a relatively sluggish rate well into thinflation will continue to mosey along at a relatively sluggish rate well into the future.

Cunningham calculates that an uptick in long - term interest rates of half a percentage point (50 basis points) with no change to inflation — or inflation expectations — would cause the price of the 2036 Government of Canada RRB described above to drop in value by about 10 %.

You see, doubts on future rate hike apparently began to grow because the minutes revealed that Fed officials were worried about inflation and inflation expectations.

>> TALK ABOUT UNREALISTIC EXPECTATIONS... Individual investors told researchers for the Natixis Global Asset Management Survey that they need annual returns of 9.7 % above inflation to meet their financial goals.

If we have a real return expectation of zero in bonds and say 4.5 % in stocks, then we're looking at a long - term return expectation of about 2.25 % above inflation on a portfolio split evenly between stocks and bonds.

A steep yield curve generally means that inflation expectations are rising or there is great uncertainty of the future, as it implies that people are either (1) reluctant to buy longer term bonds, or (2) are are keeping their funds liquid because they feel uncertain about the future.

Household survey measures of expectations for year - ahead inflation jumped in March to their highest levels in about two years; in contrast, survey measures of longer - term inflation expectations were unchanged or up slightly...

«Rising inflation expectations are more than countered by the rise in U.S. Treasury yields and expectations about upcoming rate hikes by the Fed.

Equities futures were pointing to a higher opening for U.S. stocks Tuesday morning as the 10 - year Treasury yield paused close to a level that apparently has concerned some market participants because of what it says about inflation expectations and the potential to dent corporate borrowing...

He said he doesn't take much stock in consumer surveys about inflation expectations because most people have been ingrained to expect inflation in the future, not deflation.