Sentences with phrase «low policy interest rates»

«One specific consequence would be that even extraordinarily low policy interest rates could prove to be less stimulative than in normal circumstances,» Poloz said.

It achieves that by raising or lowering its policy interest rate, which influences other interest rates such as what you'll pay on your mortgage or auto loan, and the return you'll get on the balance in your savings account.

Or did it simply lower its policy interest rate down to a depressed natural interest rate level during this time?

Not exact matches

Unless something drastic happens, the era of low - for - longer interest - rate policy is nearing an end.

Its policy of maintaining extremely low interest rates has been, in large part, responsible for fueling the current mania for housing.

Before Yellen addressed the Economic Club of Washington, her counterparts in Ottawa released their latest policy statement, in which Canada's central bank said it was keeping its benchmark interest rate at 0.5 %, a quarter - point shy of the lowest level ever.

Those federal rules, which double down on restrictions adopted in 2014 and stern warnings to lenders issued by OSFI earlier this summer, require banks to qualify borrowers at higher interest rates, impose additional limits on mortgages for buyers with small down payments, and compel financial institutions to share the risk by taking out insurance policies on low - ratio mortgages.

Bernanke said specifically, when citing the lesson of Milton Friedman: «We didn't allow the fact that interest rates were very low to fool us into thinking that monetary policy was accommodative enough.»

He also recalled one of Friedman's most important lessons, that low interest rates are not the same as loose policy.

The Australian dollar has followed Wall Street lower after the US Federal Reserve indicated that it is on track to raise its interest rate at its next policy meeting in June.

«In such circumstances, fiscal policy may be called upon to provide stimulus, particularly since it is likely to be more effective at low interest rates,» Lane said.

First the line about «it shows how unreliable interest rates can be as an indicator of appropriate monetary policy» means that low interest rates do not necessarily mean loose policy.

Gold slid to a four - month low on Tuesday as the dollar strengthened ahead of a US Federal Reserve policy meeting that is being watched for clues on the future pace of interest rate hikes.

In the category of communications policy, we also extended our estimate of how long we expect to keep the short - term interest rate at exceptionally low levels to at least mid-2015.

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.

Trump said he used to invest in U.S. stocks but got out because «I don't like what I'm seeing at all,» pointing to U.S. immigration policies, Syrian refugees, and what he said were «artificially low» interest rates.

I would encourage you to remember that the current low levels of interest rates, while in the first instance a reflection of the Federal Reserve's monetary policy, are in a larger sense the result of the recent financial crisis, the worst shock to this nation's financial system since the 1930s.

The Fed's low interest rate policy has driven more and more money into bond funds as investors search for higher yields.

Australian shares were down 0.6 % after the Reserve Bank of Australia's policy board decided to cut its benchmark interest rate by 25 basis points to an all - time low of 1.50 %, as expected.

I think that we face a structural problem in monetary policy and that is when recession comes we lower interest rates by... three percentage points.

In his job as an activist at the Center for Popular Democracy, Barkan led a successful effort to get Fed officials thinking more about low - income Americans as they conduct monetary policy, often arguing against interest rate hikes in the face of high underemployment and weak wage growth.

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.

While the Fed has indicated it plans to raise short - term interest rates, the uncertain domestic and global economies and the still - loosening monetary policy of central bankers in other countries suggests that rates could remain very low for a long time still.

Moreover, corporate America has been dependent on low rates to finance the trillions of debt issuance it has taken on during the era of zero interest rate policy, or ZIRP.

Particularly during the period of extraordinary policy accommodation — low interest rates and $ 3.7 trillion of bond buying — the Fed sometimes has struggled to communicate its intentions.

German finance minister Wolfgang Schäuble has already blamed Draghi's low - interest rate policy for the rise of the populist right - wing Alternative für Deutschland, which performed well in regional polls last year at the expense of Chancellor Angela Merkel's Christian Democrats.

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.

That insight, as obvious as it may seem, conflicts with the Fed's policy of raising interest rates preemptively, even as inflation continues to undershoot its target, essentially on concerns that a 17 - year - low 4.1 % jobless rate may already be beyond what officials consider «full employment.»

Given the weight policy makers put on the Business Outlook Survey, these assessments lower the odds of an interest - rate cut.

«Policy makers will continue to watch this metric, but rising interest rates and better income growth should stabilize, then nudge this ratio lower over the next few years.»

Behind this call is her expectation that this current era of loose monetary policy and tumbling interest rates may be coming to an end, which would put more pressure on companies with low credit quality.

In a statement, it added that it is likely to stick with its low interest rate policy longer than it previously expected.

«Perhaps most salient for monetary policy, it appears increasingly clear that the neutral rate of interest remains considerably and persistently lower than it was before the crisis.»

This data shouldn't change the Fed's interest - rate strategy, as a rising labor force participation rate will put a lid on inflation regardless of how it's done, but it should lower our confidence that the Fed can solve the problem of a bifurcated workforce, in which a large chunk of workers are getting left behind, simply through interest rate policy.

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.

«Perhaps most salient for monetary policy, it appears increasingly clear that the neutral rate of interest remains considerably and persistently lower than it was before the crisis,» she said.

There is no evidence that the policy, which encourages borrowing by keeping long - term interest rates low, has inflated dangerous bubbles in the stock market and residential real estate, she said.

STANLEY FISCHER: So let me just — I thought a little with R - star being so low — I sort of made — a nuisance of myself by saying, it's not only monetary policy that affects the interest rate.

The reason Keynesianism got such a boost post-crisis was not for any real - world examples of its success — the list of its failures, by contrast, is lengthy — but because of the assertion, accepted far too quickly with far too little evidence, that monetary policy, at the fabled Zero Lower Bound (interest rates of near zero) had lost its effectiveness.

In the middle, US Economics of slowly improving US economy, low interest rates, low and gradually rising inflation, recovering job picture, front - loaded fiscal policy are all collectively in a tug of war with gradually tightening monetary policy and trade war scare.

Importantly, this future low level of interest rates is not due to easy monetary policy; instead, it is the rate expected to prevail when the economy is at full strength and the stance of monetary policy is neutral.

In such circumstances, fiscal policy may be called upon to provide stimulus, particularly since it is likely to be more effective at low interest rates.

And to the extent that, because of constraints on how low interest rates can go, recessions are more frequent and protracted in the years ahead, the case for expansionary fiscal policy is reinforced.

Today's biggest bubble in safe assets, however, is the one in Treasury bonds, which is a direct consequence of the Fed's policy of holding interest rates down at abnormally low levels.

Such information is used in monetary policy decisions including whether to raise or lower interest rates.

Monetary policies following the 2008 Collapse produced the longest period of sustained low interest rates in recent history.

If the economic outlook abroad deteriorates and this causes foreign countries to pursue a more accommodative set of monetary policies, then the dollar would likely appreciate — other things equal — reflecting expectations of lower interest rates abroad relative to U.S. interest rates.

The Federal Reserve has lowered short - term interest rates by 100 basis points in a month — an action they describe as a «rapid and forceful response» of monetary policy both to the changing circumstances and the changing behaviour of the US economy.

Despite disappointing job growth last month, the unemployment rate fell to its lowest level since early 2008, sharpening the debate within the Federal Reserve over whether to raise interest rates when policy makers meet in two weeks.

This explains why he is repeating his policy of lowering interest rates today and flooding the financial sector with cheap credit.