Sentences with phrase «keeps rates low for»

The deductible effectively eliminate very small claims from ever being filed, which reduces administrative costs and keeps rates low for consumers.

In America, the only developed country that's actually raised rates recently, Federal Reserve chair Janet Yellen is now saying that market forces could keep rates low for years.

Ever since the bank introduced that extraordinary forward guidance in December of last year, Fed Chair Ben Bernanke has been at pains to explain to investors and reporters that the 6.5 % target is a «threshold» and not a «trigger,» meaning that the bank could decide to keep rates low for longer if it is not satisfied that 6.5 % really indicates a substantial improvement.

Therefore, one can assume that the Fed would be OK about keeping rates low for the time being so they are not rolling it over at increasingly higher rates with higher debt payments.

In a bit of a surprise, he said he is not as yet convinced the recent cooling in housing activity in Canada, and slowdown in credit accumulation, represents a fundamental shift, indicating he remains concerned about the downside risk of keeping rates low for a very long time.

«With the BOC keeping rates low for a long period of time, I would suspect that we'll see a significant trend away from longer - term fixed into shorter - term variable rates,» said Toronto broker Calum Ross.

A Treasury spokesman said: «We are determined to tackle the record budget deficit in order to keep rates lower for longer, protect jobs, and maintain the quality of essential public services.

With the Fed expected to keep rates low for longer, traders were happy to be short dollars and long higher yielding currencies such as the Mexican peso or Aussie dollar.

He is essentially suggesting that the Fed's promise to investors to keep rates low for a long period of time - something stock investors typically cheer over the near - term - will in the end increase the probability that the Fed at some point will find itself powerless to the expectations of the private sector and financial market participants.

Thus at present, what is optimal for governments is to keep rates low for a long time.

If a Brexit is voted for and uncertainty in the U.K. economy loom, U.K. gilts could benefit further (prices continue to rise and yields fall), as the Bank of England could keep rates low for longer.

This continued global economic uncertainty puts pressure on central bankers in Canada and in other countries to keep rates lower for longer.

In America, the only developed country that's actually raised rates recently, Federal Reserve chair Janet Yellen is now saying that market forces could keep rates low for years.

The bond markets, treasury yields, and mortgage - backed security yields which were rising for the last two weeks in anticipation of the Fed meeting, eased after the Fed reaffirmed its plans to keep rates low for a «considerable time.»

We need to push «legislators and regulators to find constructive solutions to keep rates low for consumers — including deferring or modifying rules and regulations that have significant capital requirements.»

In South Bend, commute times are well below the national average, which helps keep rates low for local drivers.

That kept rates low for a long time.

Additionally the government doesn't have any interest in letting the market take care of itself and it will keep rates low for a long period of time.

Thankfully, inflation remains tame, partly enabling the Federal Reserve to keep rates low for longer, contrary to the forecasts of most economists.

The FED will keep rates low for years to come.

Not exact matches

In its latest Annual Report, it argued that «even if inflation does not rise, keeping interest rates too low for long could raise financial stability and macroeconomic risks further down the road, as debt continues to pile up and risk - taking in financial markets gathers steam.»

Although last year was favorable for developing countries, investors remember the painful «taper tantrum» that ensued several years ago, when the Fed signaled it would begin pulling back on its massive bond purchases that kept rates low while injecting liquidity in markets.

The low tax rate meant they could keep extra capital in their business to invest and ultimately use when they needed it for expansion or other expenses.

Economist Michael Wolfson noticed that since extra coverage for those with lower earnings is not needed, we should keep the replacement rate at 25 per cent for lower earners, then use a 40 per cent replacement rate for earnings above a certain threshold.

While investors will have to find stocks with higher yields, pay more for them and take on more risk in bonds, the biggest change in a permanently low - rate world is that people will need to set aside more of every paycheque if they want to keep the same goal for retirement income.

Buying bonds on an unlimited basis while indicating that rates will be kept low for years requires some «splaining.

Even though our activities are likely to result in a lower national debt over the long term, I sometimes hear the complaint that the Federal Reserve is enabling bad fiscal policy by keeping interest rates very low and thereby making it cheaper for the federal government to borrow.

Keep in mind: If you are pre-approved for the loan before you head to the dealership, you can concentrate on haggling for the lowest price for the car and highest amount for your trade - in without the added pressure of negotiating the interest rate and other details of your loan.

Trump accused the Fed of keeping interest rates low for «political reasons» and as a boon to President Obama, according to Reuters.

Low rates keep demand for housing high, since lower mortgage rates can make real estate dramatically less expensive.

A more reasonable level for Carney to reach over the next two years is closer to 3 %, Koeppl says, to keep ahead of inflation and reduce the negative effects of low rates.

For all the talk of abnormal times and changes in underlying economic fundamentals, the Fed is pinning its hopes on a very conventional premise — that the U.S. consumer will keep spending at recent strong rates, encouraged by low unemployment and the apparent beginnings of higher wages.

The mounting pessimism about the U.S. economy's long - term growth argues for keeping rates lower than has been usual.

«We do not expect these factors to change in the medium term, keeping the homeownership rate low for young adults.»

The most important policy action for mitigating the damage of a recession is for the central bank to keep interest rates low, according to the respondents, followed by increasing spending on transportation and other infrastructure projects.

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.

For example, it could be keeping rates low primarily to avoid pushing British's debt - laden consumers to the brink, triggering another recession.

According to a brochure published for the benefit of the British public, «the Bank sets the official interest rate — Bank Rate — to keep inflation low.&rarate — Bank Rate — to keep inflation low.&raRate — to keep inflation low.»

It's an unsustainable model for us to assume that we can have massive government deficits and keep rates low indefinitely.»

The central bank has been under some criticism from bank managers for keeping interest rates too low for a long time.

But the comments show Kocherlakota continues to marshal new arguments for keeping interest rates low even as most of his colleagues see the time for a rate increase as approaching.

«I don't think those are challenges that are going to keep young households permanently out of the housing market, but it may keep their homeownership rate near historic lows for likely the indefinite future,» Ralph McLaughlin, Trulia's chief economist, told the Wall Street Journal.

It is important to keep in mind that low for longer is stimulative, and that just because Poloz felt the need to signal that lower interest rates are a possibility, doesn't mean they are an inevitability.

Under that policy, the Federal Reserve has kept interest rates low and engaged for period of years in a campaign of aggressive bond purchases that have increased monetary supply and bolstered the stock market.

Retirees are facing problems very similar to the average pension fund: In addition to not having enough cash contributions to keep up with the costs of aging, their returns have been hurt by interest rates that have been too low for too long.

Yields in the $ 14 trillion market for U.S. government debt touched record lows in 2016, driven by years of aggressive central bank intervention in the wake of the 2008 - 2009 financial crisis to keep interest rates low to stimulate the economy.

And more stimulus from the European Central Bank — which is helping U.K. bonds even though Britain is outside the European Union — should keep rates low and bond prices high across Europe for a while.

However, he has often been under criticism by German officials for keeping low rates for too long and thus hurting savers.

OTTAWA — The Bank of Canada says it will likely have to keep interest rates low for longer than it expected in the face of a surprisingly weak economy.

The report by McMaster University economics professor William Scarth argues that keeping the deficit at 0.5 per cent of GDP for the next three years could lower the unemployment rate by 0.4 per cent, or create the equivalent of 75,000 additional jobs.