Not exact matches
If they fear that a retreat from free trade will harm future
growth, and our ability to pay them back without resorting to
inflation, they'll demand higher «real»
rates on their loans.
«The first thing to keep in mind is that, in some long run equilibrium, wage
inflation should be equal to what the
growth rate of productivity is — so how much workers can produce — and the increase in prices for the goods they produce,» he said at the UBS Greater China conference in Shanghai.
That would boost economic
growth,
inflation and debt: if the Joy of Cooking contained a recipe for higher interest
rates, that would be it.
(Bond yields move inversely with bond prices, and rising yields tend to signal expectations of higher
growth and
inflation ahead and, therefore, higher interest
rates.)
Number one is: Can earnings and
growth outpace the risk we see in higher
inflation and interest
rates?
«The benefits of tax reform, global synchronized
growth, [and] employment gains will extend the life of our economic expansion and eventually lead to
inflation and higher interest
rates.
In other words, would pushing the short - term interest
rate down to 0 percent, from the current
rate of 0.16 percent, propel the GDP
growth and
inflation to such permanently higher levels?
«Brexit is so uncertain... Trying to forecast exactly what it's going to do to
growth, to sterling and therefore to
inflation and therefore to the Bank of England's policy is very, very difficult,» Rob Wood, chief economist at Bank of America Merrill Lynch, told CNBC before the
rate decision on Thursday.
Fed Chair Janet Yellen said in prepared remarks Tuesday that waiting too long to raise interest
rates would be «unwise,» given the rise in
inflation and economic
growth.
Indeed, the evidence I reviewed does not support the view — expounded by the new Bank of Japan management — that by buying more longer - dated securities (i.e., running printing presses a bit faster) will boost upward pressures in labor and product markets to bring stronger economic
growth and an
inflation rate of 2 percent.
Given the recent economic news, estimates of 1.2 % for GDP
growth, -0.2 % for GDP
inflation, and 0.55 % for the 3 - month T - Bill
rate are more appropriate.
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?
Euro zone officials received a slew of good news on Tuesday morning with stronger - than - expected
growth and
inflation figures and a falling unemployment
rate.
«A decrease in nominal GDP
growth resulting solely from a one - year, 1 - percentage - point decrease in the
rate of GDP
inflation» reduces the budgetary balance by $ 1.9 billion.
Page 60 of the budget gives forecasts of 2.0 % GDP
growth, -0.4 % for GDP
inflation, and 0.60 % for the 3 - month T - Bill
rate for 2015.
Simply enter in your estimates for real GDP
growth, GDP
inflation, the 10 - year bond
rate and your desired contingency reserve in the yellow cells, and the sheet will estimate the projected surplus or deficit for fiscal years 2015 - 16 through 2019 - 20.
The logic against raising
rates, as the IMF and others have outlined, is that
inflation remains tame and that economic
growth is still below potential.
A self - described «enemy of interest
rates», he has repeatedly called on the central bank to lower
rates to boost
growth, even though
inflation in running at double digits.
Most analysts expect the first
rate hike to come in September of this year, but that the pace of subsequent
rate hikes will be slow, taking into account continued middling economic
growth and below - target
inflation.
To be considered a success, the Fed needs its
rate hike to be followed next year by continued U.S.
growth, continued low unemployment, and, perhaps most in doubt, a turn higher in
inflation.
Traders are suddenly worried about interest
rates (although anyone older than 30 has to be amused that 2.85 % on the Treasury 10 - year is a source of panic), worried about
inflation (although after the last decade of stagnant wages, Friday's 2.9 % rise should be cheered, not jeered), and worried about a tax - fueled spike in
growth (with this report from Powell's Atlanta colleagues leading the way.)
Worries about the Federal Reserve hiking interest
rates more aggressively to combat rising
inflation should not overshadow the benefits of stronger economic
growth, the billionaire co-founder of Blackstone Group told CNBC on Thursday.
As of January 2001, the CBO foresaw another decade of 3 % real GDP
growth, 3 %
inflation, unemployment at 5 % or below, and flat - as - a-pancake interest
rates.
Powell in statements throughout the year, culminating with his recent Senate confirmation hearing, has been clear he sees little risk of
inflation that would prompt the Fed to raise
rates faster than expected, and takes weak wage
growth as a sign that sidelined workers remain to be drawn into jobs.
It said global
growth continued to be solid and broad - based, the economy was running close to its potential and stronger business investment suggested economic capacity could grow even further without lifting the
inflation rate.
This makes sense; lower
growth should result in bond yields falling, anticipating lower Bank of Canada
rates in the future and less need for a risk premium around
inflation.
The U.K. had been expected to follow close behind the Federal Reserve in raising interest
rates for the first time in nearly a decade, but with lower commodity prices and weak wage
growth still keeping a lid on
inflation, economists now think that the U.K. may not raise
rates till 2017 — even though new data out Wednesday showed the employment
rate hit a 45 - year high of 74 % in the three months to November.
Federal Reserve officials see increased
growth and an uptick in
inflation as justification to continue to raise interest
rates gradually.
The
inflation - triggering
rate of
growth is called «potential.»
The Fed reckons U.S. gross domestic product could expand by as much as 2.7 % in 2016, which would be considerably faster than the
rate of
growth — roughly 2 % — that policy makers think the American economy can handle without stoking
inflation.
Rising
rates are good for stock valuations because they reflect underlying economic
growth and
inflation, which are both good for profits, at least initially, Lakos - Bujas said.
For the first time since oil prices crashed, strong job
growth has the Bank of Canada worried about
inflation, meaning higher interest
rates are coming
The worst case scenario is that the country will experience what economists call a «hard landing,» essentially a major slowdown in GDP
growth, to less than 5 % or the approximate
rate of
inflation.
The global economy risks becoming trapped in a low
growth, low
inflation, low interest
rate equilibrium.
Recent economic data point to some
growth firming,
inflation remains hard to find and long - term
rates are up by barely 10 basis points (bps) from where they started the year, according to data accessible via Bloomberg.
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).
The OECD noted that «short - term
inflation expectations appear to be inching upwards,» and said that the Bank of Canada, which has kept interest
rates to promote economic
growth, «should soon resume tightening at a moderate pace.»
«Following the United Kingdom's vote to leave the European Union, the exchange
rate has fallen and the outlook for
growth in the short to medium term has weakened markedly,» the central bank said in its quarterly
Inflation Report.
Further dollar gains will likely depend on data showing additional improvement in
growth and
inflation, which could compel the U.S. central bank to raise
rates this year an additional three times.
Fed policymakers» confidence in their outlook will be on show on Wednesday when they release their latest set of quarterly projections on
growth, unemployment and
inflation as well as their expected
rate hike path.
A few Fed policymakers worry the U.S. economy, which has delivered strong job gains but worryingly weak
rates of
inflation, could be stuck on a low
growth path that requires low
rates for years as well as new policy tools.
Mired in a world of low
growth, low
inflation and low interest
rates, officials from the Federal Reserve, Bank of Japan and the European Central Bank said their efforts to bolster the economy through monetary policy may falter unless elected leaders stepped forward with bold measures.
The best wage
growth since 2009 sparked speculation that incoming Federal Reserve chair Jerome Powell may have to raise interest
rates more than the three times the central bank has forecast in order to tame
inflation this year.
In 2005, the potential annual
growth rate of the global economy — the
rate at which there is no upward pressure on
inflation — was 5 %.
Everything was fine after the central bank announced that it had decided to leave its benchmark interest
rate at 0.5 %, while stating that it had cut its outlook for economic
growth and indicating that it would take longer to achieve its
inflation target.
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.
One can see that the highest
rates of money
growth and
inflation are clearly in the emerging markets, and not in the developed markets.
Expect the Federal Reserve to raise its interest
rate targets once between now and then — but only once, as U.S. economic
growth stays steady but slow, while
inflation and wage
growth also remain modest.
Returns from that era were boosted by a confluence of factors that are unlikely to come together again: declines in
inflation and interest
rates, strong global GDP, low corporate tax, and rapid
growth in China.
«Beyond the near - term, a return to a more cautious communication strategy and pace of interest
rate increases is expected in light of the headwinds facing Canada,» including slow
inflation growth, Toronto - Dominion Bank Senior Economist Brian DePratto said in a research note.