Sentences with phrase «financial conditions»

Financial conditions will be much less accommodating.
Prolonged curve flattening from the aforementioned easy financial conditions (low long - term rates) despite rising short - term rates would steadily increase institutions» vulnerability to potential balance sheet shocks, as investors continue to add low quality and illiquid assets to «enhance returns.»
As seen in prior cycles, changes in short - term interest rates alone had yielded little effect on financial conditions, as buoyant risk sentiment strengthened equities, corporate bonds, as well as various forms of «esoteric» investments.
In her March 7th speech, Governor Brainard acknowledged that financial conditions «have improved in recent weeks» after «tightened somewhat» in recent months.
Once again, Governor Brainard argued that «tighter financial conditions and softer inflation expectations may pose risks to the downside,» and «patience» is warranted from a risk - management perspective.
The increase in wealth and accommodative financial conditions stimulated spending and investment.
Given term premium suppression (via QE) reduced volatility and induced investors to buy risky assets to boost returns, a sustained rise in long - term interest rates would give investors more options to achieve yield targets, thus making risk assets appear less attractive and ultimately erode demands for yield and tighten financial conditions.
Bottom line: Financial conditions are getting tighter.
Central bank independence, or monetary policy autonomy refers to a central bank's ability to conduct monetary policy without political interference, that monetary policy decisions are made purely based on economic and financial conditions to achieve publicly - stated objective (s) of a central bank.
Overall, as the statements after the past five Board meetings have made clear, the sequence of changes to the cash rate, other adjustments by lenders in response to the rise in term funding costs since mid 2007 and tighter credit standards have combined to produce financial conditions that are tight.
The IMF cited growing trade tensions and dangers of a shift toward protectionist policies, tightening financial conditions and geopolitical strains as potential downside risks.
The Fed clearly considers rising market volatility to be a mark of deteriorating financial conditions, and hence an economic risk factor.
Regarding U.S. monetary policy, the IMF said it still remains «very accomodative,» but that the possibility of future rate hikes «have contributed to tighter external financial conditions, declining capital flows, and further currency depreciations in many emerging market economies.»
Financial conditions were apparently benign — save for the fact that the Federal Reserve, under the charge of newly installed Chairman Alan Greenspan, appeared bent on raising interest rates, which induced a steep rise in Treasury yields.
Although farm financial conditions have stabilized somewhat, higher interest rates could heighten concerns for some farm borrowers.
Since the Fed started hiking rates up, markets and financial conditions have not tightened.
Financial conditions have returned to their most supportive levels in more than a year while credit spreads have retraced more than half of their widening.
The U.S. Federal Reserve (Fed) has suggested it's likely to remain on hold for the near future given Brexit - related uncertainty and tightening financial conditions.
Additionally, because AllianceBernstein Japan Ltd. enters into such transactions mentioned above with financial instruments firms, investment performance is affected by the change in their businesses and / or financial conditions.
Goldman Sachs Financial Conditions Index tracks changes in interest rates, credit spreads, equity prices, and the value of the US dollar.
Still, he is keeping a close eye on financial conditions.
This is not uncommon, if we look back to 2013 to see an example of this, the Fed started talking about the quantitative easing taper in the middle of 2013, and by Sept 2013 the expectation was they were ready to go, but they held back for 3 more months because of the tightening of financial conditions.
On one hand, the ECB has tried to temper expectations into the event by saying nothing new will come of it but on the other hand the ECB Minutes» reference to EUR overshoot supports the idea of a dovish Draghi as financial conditions tighten in Europe.
In fact, today's financial conditions more closely resemble those prevailing in October 1929.
Some slowing has been expected, on account of the tightening in financial conditions which has taken place since the middle of last year.
This understanding allowed policymakers to project changes in financial conditions (short - term borrowing cost, long - term credit spreads, equity valuation, and exchange rate), which would elicit reactions from the real economy.
The ECB explained this downgrade to its inflation forecast by citing global growth uncertainties, the general tightening of financial conditions and falling oil prices.
Buoyant demand in this market stems from the high level of vehicle affordability — in part a consequence of the appreciation of the Australian dollar — and generally favourable financial conditions.
Dudley explained to the press that one reason to tighten monetary policy is to tighten financial conditions, which were more loose than policymakers» expectations:
Normally, this would be read as an indicator of tighter - than - average financial conditions, but in the current situation it is probably best interpreted as symptomatic of developments in offshore markets.
At that time, Fischer saw benefits to maintaining a larger balance sheet, remarking that when to ``... begin phasing out reinvestment will depend on how economic and financial conditions and the economic outlook evolve.»
He warned about Sterling's «sudden depreciation» on Brexit as well as knock - on impacts on global economic and financial conditions.
Influenced by the weakness in financial markets and indicators such as «financial conditions», the Federal Reserve's Open Market Committee (FOMC) postponed a widely anticipated interest rate hike in March.
Overall, however, evidence that the tighter financial conditions are restraining growth is only gradually emerging.
The lower exchange rate, favourable domestic financial conditions and the boost to household incomes from income tax cuts and increases in social benefit payments should continue to support growth in the period ahead.
But it probably shouldn't be a surprise if more special steps are utilized to recover from the toughest financial conditions since the Great Depression.
In particular, despite falling from the peak reached in the December quarter, capacity utilisation is still at a high level and financial conditions remain favourable.
Kansas City Fed President George dissented, and Chair Yellen will likely face another dissent from Cleveland Fed President Mester if further steps to normalize policy is pushed into 2H 2016 at the June meeting, barring significant changes to economic and financial conditions.
As noted in the chapter on «International Financial Markets», the Federal Reserve raised interest rates in June and August, reflecting the improvement in international economic and financial conditions, as well as the persistent strength of domestic activity.
Rises in corporate investments are supported by favourable financial conditions and corporate profits.
But an alarmingly rapid ascent of the US dollar has tightened financial conditions and pushed inflation further away from the 2 % goal, all at a time when the expansion is strengthening but still fragile.
Draghi said «a constant policy stance will become more accommodative,» as easy financial conditions accelerate economic activity.
Other metrics such as cash flow, financial conditions, history, projections etc may be considered.
Consequently, even as the Fed has now jacked up its overnight rate six times since it started hiking, global financial conditions have remained exceptionally lax.
In fact, we think there are four major factors that will influence interest rates around the world: changing demographic trends, innovations in technology and energy, financial conditions as related to leverage, liquidity and cash flow, and monetary policy.
Caveats: If markets and investors overreact, financial conditions could tighten too much and choke economic growth.
Later in 2018, if financial conditions worsen and the 10 - year Treasury rises as I expect, that could be a good time to add more long - term bonds.
Oil price volatility, trade tensions, geopolitical risk and a «sharp tightening of global financial conditions» are just a few of the potential pitfalls that lie ahead.
Financial conditions in major economies remain very accommodative and continue to provide much - needed support to economic activity.
The market - led tightening of financial conditions generated serious tremors in emerging market economies.
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