Sentences with phrase «growth over the inflation»

If there is growth over the inflation rate, a trill would be more valuable than TIPS, and at equivalent interest rates, people would pay more for trills.

Not exact matches

Hence the question: Is it reasonable to expect that marginally looser policies would now lead to more than tripling of the growth rate (to 1.5 - 2 percent) over the next two years, while raising the inflation rate from -0.3 percent to 2 percent — as the Bank of Japan is promising?

If the bulls are right, EPS would grow 8.5 points faster than the economy (assuming 2.5 % real annual GDP growth plus 2 % inflation) for the next ten years, hitting over 16 % of national income by 2028.

When you purchase a broad swath of equities, say an S&P 500 index fund, the returns you can expect over the next decade or so comprise four building blocks: the starting dividend yield, projected growth in real earnings per share, expected inflation, and the expected change in «valuation» — that is, the expansion or contraction in the price / earnings (P / E) multiple.

Without increasing the tax share of output, 1 per cent real growth over the next 40 years will yield an inflation - adjusted increase in tax revenue per capita of about 50 per cent.

The extra growth you get on your stock market portfolio, compounded over 30 years, will more than make up for what you lose on rental inflation.

Normally a 6 % growth rate in M2 would be highly inflationary (and Canada did experience periods of over 3 % inflation in mid-2001 and late 2002 - early 2003).

Because PE is a measure of earnings over time, you can think of it as representing the number of years required to pay back a stock's purchase price (ignoring inflation, earnings growth and the time value of money).

If he becomes unsettled by the inflation and growth numbers, another option for Poloz would be to move more rapidly over the next 12 months, but stop before he gets to the neutral rate.

It makes me somewhat more confident that overall inflation will return to our 2 percent inflation objective over the medium term as long as the economic growth that I expect actually materializes.

That is, would expectations of outsized demand growth — of, say, 4 percent per year over the next four years in inflation - adjusted terms — generate undue inflationary pressures that would require the Federal Reserve to respond by raising interest rates, essentially killing off any actual growth that those expectations could generate?

[2] Each quarter in the Statement on Monetary Policy, we publish forecasts for Australia's major trading partners» GDP growth, as well as Australia's terms of trade, GDP growth, unemployment rate and inflation over the next two - and - a-half years.

Over the next couple of years, commodities will be an area where we'll begin to see a lot of improvement fundamentally, including a better macroeconomic backdrop with rising growth and rising inflation.

The U.S. economy likely created 2 million new jobs last year, but tepid wage growth is keeping inflation in check and raising questions over the Fed's 2018 rate path.

Core inflation has been lower than expected in recent months... Core inflation is expected to increase gradually over coming quarters, reaching 2 per cent by the middle of 2013 as the economy gradually absorbs the current small degree of slack, the growth of labour compensation remains moderate and inflation expectations stay well anchored.

Over the long - term, market interest rates are driven by economic growth, inflation expectations and other extraneous factors.

Controlling inflation preserves the value of money and encourages strong and sustainable growth in the economy over the longer term.

Reflation is alive and well according to our definition: rising wages (albeit slowly this cycle) feeding stronger nominal growth, allowing lingering slack from the last recession to be gradually eliminated, stirring higher inflation over time.

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.

Positions that have recently come undone include betting on steepening yield curves and inflation expectations (inflation - linked over nominal bonds)-- and in equity markets, picking value over growth shares.

The central scenario for the Australian economy is a positive one, with growth over the next couple of years at, or above, average, a relatively strong labour market, and inflation consistent with the medium - term target.

That framework's been in place since the early 1990s, we have hit the target over that 20 year period, the average inflation rate's pretty close to 2.5 per cent, so we regard that as successful by the terms of the definition that we set ourselves and I think that's made a big contribution to economic stability more generally and I don't think it's an accident that that period of fairly low predictable inflation has coincided with pretty good sustained growth in the economy.

GroupM's State of Digital report, released Thursday, predicts a year of CPM inflation and ecommerce growth as the duopoly maintains its stronghold over the digital economy.

And over the past several years, the building industry has raised prices on its offerings at a pace that has exceeded both the rate of inflation and income growth.

The central bank upped its estimate for potential growth — how fast an economy at full capacity can expand without generating too much inflation — to 1.8 per cent over the next two years from a projection of 1.6 per cent in the January report.

With growth prospects for the world economy being revised up and inflation no longer falling, short - term market interest rates have risen on the expectation that central banks will unwind the accommodative monetary policy they had put in place over the previous year or two (Graph 4).

EQUITIES THEMATIC — SAME AS IT EVER WAS: Small Cap / High Beta / Cyclicals / Value / High Short Interest / Inflation / Domestic Exposure / Weak Balance Sheet over Low Vol / Defensives / Anti-Beta / Growth / Quality / Strong Balance Sheet.

Over the past couple of years, the prevailing concern was to limit the risk of an abrupt decline in growth, and to facilitate a return of inflation to the target.

In his article «The Age of Secular Stagnation,» Larry Summers argued that excess of saving over investment is acting as a drag on demand to weigh on growth and inflation, and current monetary stimulus should be expanded to accelerate investments and pull demand forward, such as raising the inflation target or to conduct nominal GDP targeting.

Previous analysis illustrated that inflation compensation has returned as reasonable measure of inflation expectations over a 10 year period while both the economy's potential growth and the changing size of the Fed's balance sheet influence the real yield.

Since China received signs of slowing inflation over the past few months, it can now shift its attention toward growth.

Despite a tight labour market and strong growth in input prices, consumer price inflation was 1.6 per cent over the year to December, below the Bank of England's 2 per cent target rate.

«to provide a level of protection from the effects of inflation by generating a total return (the combination of income and growth of capital) consistent with or greater than the rate of UK inflation over a rolling three - to five - year period.

Taken together, over the entire seven - year period, the inflation - adjusted average annual growth rate of this portfolio came to a meager 1.11 percent.

What we have seen over the last several cycles is a sustained pattern of weaker economic growth (see Exhibit 2) and a strong tendency toward disinflation — meaning inflation that is persistently low or trending lower.

It is the central premise behind inflation targeting, and central bankers — essentially without exception — assert that they have the capacity to affect or even determine inflation in the long term, but that they do not have the capacity to affect the average level of output, much less its growth rate over time, even though they may have the capacity to affect the amplitude of cyclical fluctuations.

In addition, given stubbornly low inflation and investor concerns over global growth, there's also the prospect for an extension of Europe's current quantitative easing program, as many in the media speculated last week.

Over time, as the US Dollar continues to depreciate, it will bring higher inflation, lower real growth rates and a reduced standard of living for most American wage earners.

In contrast, inflation in the domestically oriented sectors of the economy has continued at a higher rate, with the non-traded component of the CPI increasing by around 4 per cent over the latest year, reflecting ongoing growth in costs and strong domestic demand pressures.

This appeared to be happening, to some extent, in Australia over the past year or so, but overall wages growth has remained high in comparison with inflation and may again be accelerating.

Producer price inflation remains modest with large declines in the prices of imported items offsetting the growth of domestic prices; overall final stage prices rose by 0.1 per cent in the December quarter, to be 1.0 per cent higher over the year (Table 15; Graph 73).

Core inflation has drifted higher over the past year, as slowing productivity growth has pushed up growth in unit labour costs, albeit from a very low level.

Although the low interest rate environment over the past decade has compressed bank NIMs, we expect U.S. - led reflation — rising nominal growth, wages and inflation — to accelerate.

It appears that the extensive changes in the economy over the past decade — including a structural fall in the inflation rate, productivity - enhancing changes in the labour market, corporatisation and privatisation of public - sector enterprises and substantial falls in the barriers to international trade — have led to an improvement in Australia's underlying rate of productivity growth.

News media are characterizing the debate over whether or not to increase rates, as «Should we be more concerned about the pace of job growth or the threat of inflation?»

On top of the existing internal problems of «lowflation,» shorthand for ultra-low inflation, weak demand and anemic credit growth, the deterioration in the external backdrop over much of 2014 — rising geopolitical tensions with Russia, and the slowdown of the Chinese economy and many other emerging markets — has made a rapid return to meaningful growth across the eurozone unlikely, in our view, despite some positive signs, including the stabilization of many peripheral economies and the boost in competitiveness from the weaker euro.

Historically, that has entailed about 3.2 % real growth and just over 3 % inflation.

Rent growth is pacing almost a full percentage point behind the overall rate of inflation, which stands at 2.4 percent as of the latest data release, and is even further behing the growth in average hourly earnings which have increased by 2.7 percent over the past twelve months.

Notwithstanding the impact of Naira devaluation and double digit inflation in Nigeria and a number of other African countries where UBA operates, the Group managed through its cost lines to deliver a sterling Profit Before tax (PBT) ofN57.5 billion, representing a significant growth of 65.5 percent over N34.8 billion recorded in the corresponding period of June 2016.

Opposition parties had hoped to tap into public anger over inflation that peaked at over 40 percent last year, as well as low growth and high unemployment.