Sentences with phrase «expectations for inflation»

UDIBonos performance has lagged: current breakeven - inflation levels are below analysts» expectations for inflation.

The managers were also stymied by sinking expectations for inflation amid a slump in oil prices.

But in the present, their expectations for inflation keep falling.

The 30 - year BEI is considered to be a measure of the market's expectations for inflation over the next 30 years.

Instead, higher rates have been driven by higher expectations for inflation.

The Bank's growth forecast for 2011 was revised downwards from around 3.4 % to around 2.5 %, while it blamed the VAT hike to 20 % for increased expectations for inflation.

Breakeven rates — the difference in yields between nominal and inflation - linked bonds of the same maturity — reflect market expectations for inflation.

Most indicators point to subdued expectations for inflation in the period ahead.

The Fed began raising rates in December 2016 amid expectations for inflation to reach its target — and the central bank expects more rate hikes to come.

Through this latest correction, small - cap equities have outperformed large - cap equities, which is a good sign that market expectations for inflation and interest rates are not direct threats to the economic expansion.

Longer - term rates, often used to gauge investors» expectations for inflation and economic growth, remain mostly unchanged from two years ago.

Even as rates rise in general, the influence of central banks and expectations for inflation can create short term movements in the yield curve that can be exploited using systematic style premia.

Not exact matches

«Rising inflation expectations, an overall bullish commodity trend (late - cycle preference for commodities), geopolitical and financial risks are being offset by a rising dollar and rising real - rates,» Saxo Bank analysts said in a note.

U.K. inflation jumped to 1.2 percent year - on - year in November, just beating analyst expectations for a 1.1 percent increase, according to data from the Office for National Statistics (ONS).

As far back as 2002, while vice minister, Kuroda used an opinion column in the Financial Times, co-written with his deputy at the finance ministry, to call for «aggressive monetary policy» from the central bank, including an inflation target, aimed at «drastically changing price expectations.»

Indeed, this trend was backed up by data showing China «s imports rose for the first time in nearly two years in August as firms restocked and wholesale inflation expectations rose.

Also unsurprisingly, Federal Reserve Bank of Kansas City President Esther George, dissenter - in - chief at the bank, voted against the motion to stay the course, citing «economic and financial imbalances,» as well as, further down the road, «an increase in long - term inflation expectations» as reasons for concern.

Investors have been selling Treasurys this month — pushing yields higher — amid expectations for rising inflation, which could prompt the Federal Reserve to tighten monetary policy at a faster pace.

Poloz described the inflation target as «sacrosanct» to the Bank of Canada, an «anchor» for Canadians» inflation expectations.

The expectation of future inflation will also reduce the value paid for oilsands leases, although lease sales are not as frequent as they once were.

Add on the jumps in market - based measures of inflation expectations, the chances of more Federal Reserve hikes, and other macro-economic data points and the moves for the economy have been dramatic.

This tool uses the present value of bond portfolios, adjusted for interest rate and inflation expectations, to show current retirees how much in retirement savings they need today to account for every $ 1 they need in the future, assuming they hold a portfolio made up entirely of investment - grade bonds and longer - term Treasurys.

His comments suggest the ECB remains confident that inflation is finally on an upward trend, supporting market expectations for the bank to finally end its bond purchase programme this year, satisfied that inflation will eventually hit its nearly 2 percent target.

Gold's relationship with inflation expectations has gotten interesting lately, and I'm watching one key level for gold in particular.

Total CPI inflation is tracking slightly below expectations because of temporary weakness in prices for gasoline, food, and telecommunications.

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.

This means higher inflation expectations would be perceived as a problem for risk markets.

STEVE LIESMAN, NIGHTLY BUSINESS REPORT CORRESPONDENT: The latest CNBC Fed survey finds expectations for interest rates and inflation both rising, while the outlook for the stock market has been reduced yet again.

In this study, survey respondents were asked for their inflation expectations.

Low longer - term inflation expectations, if allowed to become entrenched, would act as a restraint on actual inflation making it more difficult for us to meet our inflation objective.

The chart below shows that the U.S. 10 - year inflation breakeven rate, or the bond market's expectation for the average inflation rate over the next 10 years, is the highest since 2014.

For example, they could seek to buy resilient bonds that pay decent coupons with limited price downside while simultaneously shorting fixed - income securities that look vulnerable when interest rates and inflation expectations trend higher.

You might of course cite expectations — I know the Fed must try to see around corners — but your own staff models are predicting growth and inflation to proceed in like fashion to the above for the next few years to come.

The Fund currently holds primarily Treasury Inflation Protected Securities (which currently price in expectations of zero inflation for the next decade or more, while reflecting reasonably high inflation - adjusted yields to mInflation Protected Securities (which currently price in expectations of zero inflation for the next decade or more, while reflecting reasonably high inflation - adjusted yields to minflation for the next decade or more, while reflecting reasonably high inflation - adjusted yields to minflation - adjusted yields to maturity).

When the BoJ takes steps aimed at changing inflation expectations, for example, they are always surprised because these policies do not seem to affect Japanese psychology at all.

Having a numerical goal takes account of the importance of inflation expectations, and seeks to provide an anchoring point for them — which is a critical function of any monetary policy regime.

Consumers» expectations and forecast uncertainty for overall inflation and home price growth, and expected price changes for key commodities

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 behave.

Thus a high degree of communication and transparency was necessary to build credibility as quickly as possible, to enhance the transmission of monetary policy and to provide an anchor for the public's expectations of future inflation.

Blackrock thinks that with low inflation and low expectations for growth, long - term interest rates won't necessarily rise in step with Fed rate hikes.

Here it is important, in my view, for policy - makers to encourage markets to form their expectations on the basis of the central bank behaving consistently with its announced inflation objective.

This specification provides a clear benchmark as an anchor for long - term expectations — and the average rate of inflation over the past decade was 2.7 per cent.

If inflation expectations remain anchored, and a decline in real purchasing power is accepted, then there is scope for monetary policy to «look through» the temporary period of higher inflation, because firms and consumers are doing likewise.

For example, it is often useful to view the short - end of the yield curve as being primarily influenced by growth, with the long - end mostly reflecting inflation expectations.

And I am not sure why bringing down inflation would be so difficult if that were desired especially given that it would surely take a long time for expectations to become unanchored towards the high side of 2 percent.

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.

-- 2 % on inflation is a symmetric target; having been below it for years, we've earned the right to be above it for awhile without assuming expectations are no longer anchored on the target rate.

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.

For example, when we have seen big moves in energy costs, such as the price of gasoline, there has been little evidence that consumers began to adjust their overall inflation expectations, either upward or downward.