Sentences with phrase «lower nominal interest»

The much lower nominal interest rate structure prevailing in Australia in the 1990s reflects, in part, the large decline in inflation since the late 1980s.

In this paper, the authors started with the following question: «Do persistently low nominal interest rates mean that governments can safely borrow more?»

Not exact matches

In many cases, acceleration should lower their costs, as nominal interest rates will likely be higher two years from now than they are today, and idle construction crews in Alberta are relatively abundant.

Nominal interest rates, both short and long term, have been much lower and more stable.

Low inflation and the impossibility of pushing nominal interest rates significantly below zero meant that there was little scope for lowering real interest rates and easing credit conditions by conventional means.

While stocks have a terminal value beyond a 10 - year period, the effects of interest rates and nominal growth on those projections largely cancel out because higher nominal GDP growth over a given 10 - year horizon is correlated with both higher interest rates and generally lower market valuations at the end of that period.

As long as this government debt is rolled over continuously at non-repressed interest rates, which will be low as nominal GDP growth drops, China can rebalance the economy without a collapse in growth.

In a low - inflation environment, nominal interest rates are also low, and households are able to service much higher levels of debt than they could in the past.

There are so many reasons why this is wrong (to list just the most obvious, poor countries have much lower debt thresholds than rich countries, Japanese debt can not possibly be dismissed as not being a problem, and because it is almost impossible to find an economist who understands the relationship between nominal interest rates and implicit amortization, Japanese government debt has probably only been manageable to date because GDP growth close to zero has permitted interest rates close to zero) and yet inane comparisons between China's debt burden and Japan's debt burden are made all the time.

There is a growing sense that the world is demand short — that the real interest rates necessary to equate investment and saving at full employment are very low and may be often unattainable given the bounds on nominal interest rate reductions.

Originally, the Liberals adjusted the private sector average forecasts (lower real and nominal GDP and increased interest rates).

Interest rates of intermediaries in Australia remain historically low, both in real and nominal terms, and by international standards (Table 7).

Nominal interest rates are at historical lows and new fiscal measures have shifted the budget into a sizeable deficit.

Although it now seems that the «zero lower bound» for nominal interest rates wasn't actually zero, it is not clear that the recent negative rates implemented by a handful of central banks in Europe offer some new vista of policy effectiveness.

The housing recovery is being supported by an historically high level of affordability of houses which, in turn, reflects the low level of nominal interest rates.

Even if the Bank of Japan did keep real and nominal interest rates low after the country returned to inflation, the old «deflationary equilibrium» would be broken.

If she had added: «Plus, even though we are currently above the Effective Lower Bound on nominal interest rates (which is probably below 0 %) we are worried that the margin of safety is getting a bit small, and are pleased that fiscal policy is making that margin of safety a bit bigger than it otherwise would be» that would also be an internally consistent thing for the Bank of Canada to say.

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.

By 2016 QQE had succeeded in lowering real interest rates through both lower nominal rates and increased inflation expectations.

Now, we're sympathetic to the idea that prospective real growth and inflation may be sufficiently lower in the future to place us into a low nominal growth world, which would also justify lower equilibrium interest rate levels.

Basically, the lower interest rates are, the more cash or reserves («base money») people are willing to carry around, per dollar of nominal GDP.

Interest rates, both nominal and real (i.e. after inflation), are incredibly low, but other measures of financial conditions are less benign.

You see, many Eastern European borrowers like the idea of borrowing in Swiss francs or Euros, because the nominal interest rate is currently drastically lower than what they'd pay on a local currency loan.

Maximum ratios 29/41 30 year fixed rate loan only Interest rate must be lower than the existing loan to be refinanced If the final settlement statement shows nominal cash back to the borrower, that amount must be applied as a principal curtailment.

What concerns me most is that interest rates — real and nominal — are so low everywhere.

Inflation - indexed securities have a tendency to react to changes in real interest rates, which represent nominal (stated) interest rates lowered by the anticipated effect of inflation.

The yield of a global portfolio is about as low as its ever been from a cyclically adjusted P / E, credit spread, and nominal interest rate standpoint, while the global economy is more likely to be in the later (than early) stages of the business cycle.

Low nominal and real interest rates on bonds mean a wider risk - premium spread on stocks and a cheaper relative valuation.

Also given the low growth, low inflation and low interest rate environment and the somewhat above average valuation numbers, one has to expect lower nominal returns from equities as compared to the past.

[10][12] «One of the main goals of financial repression is to keep nominal interest rates lower than they would be in more competitive markets.

As the Swiss National Bank demonstrated in December 2014 when the institution lowered its deposit rate to − 0.25 %, the cost of storing cash is the actual lower bound for nominal interest rates.

In today's Zero Lower Bound world, central banks have effectively set nominal interest rates as very close to nothing.