Sentences with phrase «lower nominal rates»

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

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.

One, you've got lower nominal GDP growth, and long - term rates correlate with nominal GDP.

There is, of course, a great deal of skepticism about the 7 % real GDP growth rate that China has reported, but we should remember that in the first quarter, nominal GDP growth was much lower, 5.8 %.

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.

Because low - risk investments return roughly 20 % on average in a country with 20 % nominal GDP growth, financial repression means that the benefits of growth are unfairly distributed between savers (who get just the deposit rate, say 3 %), banks, who get the spread between the lending and the deposit rate (say 3.5 %) and the borrower, who gets everything else (13.5 % in this case, assuming he takes little risk — even more if he takes risk).

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).

Thank God someone in the US government understands that Japan is being hurt by falling NGDP, and that the easier money required to end the deflation will likely lead to a lower nominal exchange rate.

Even if the growth rates of nominal GDP and U.S. corporate revenues (including foreign revenues) over the coming 20 years match their 4 % growth rate of the past 20 years, and even if the most reliable valuation measures merely touch their historical norms 20 years from today, the S&P 500 Index two decades from now will trade more than 20 % lower than where it trades today.

Lower nominal — but higher effective — tax rates would eliminate bad incentives and bring in more corporate income tax revenue.

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

Other factors driving rates lower — low nominal global growth, an older population, lower fixed income supply and the disinflationary pressure of technology — will likely remain in place.

The large nominal exchange rate appreciation also helped to contain inflationary pressures in an environment of strong growth in domestic demand and a decline in the unemployment rate to relatively low levels.

This is a percentage point lower than average potential growth in the decade prior to the crisis... We estimate that the real neutral policy rate is currently in the range of 1 to 2 per cent... This translates into a nominal neutral policy rate of 3 to 4 per cent, down from a range of 4 1/2 to 5 1/2 per cent in the period prior to the crisis.»

In 1991, the nominal GDP growth rate hit a low of 2.9 %.

McAndrews J (2015), «Negative Nominal Central Bank Policy Rates: Where is the Lower Bound?»

Of course that 25.6 % number is still quite a bit lower than the nominal tax rate of 35 %, the highest in the world behind only Japan.

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.

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

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.

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.

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.

The level of yields — around 4 1/4 per cent at present — looks low not only on historical comparisons but also relative to normal benchmarks such as the growth rate of nominal GDP, which in the US is currently around 6 per cent (Graph 16).

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.

Other factors driving rates lower — low nominal global growth, an older population, lower fixed income supply and the disinflationary pressure of technology — will likely remain in place.

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

It also seems very odd to me that this bank would advertise the (lower) nominal rate instead of the higher 1.005 actual APY!

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

In an environment in which nominal rates are going up due to the Fed, but inflation expectations are falling, real rates would be rising sharply, albeit from a low level.

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.

And while you might lose money in real terms if rates rise your probability of losing money in nominal terms is fairly low.

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.

I set its dividend growth rate to 5.0 % nominal, which is low but matches that of the S&P 500.

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.

Some of the thinking is that since gains are taxed in nominal dollars without consideration of inflation, the lower rates on longer term investment offset the taxation on some of the phantom gain that only exists because of the devaluation of the currency.

In 1991, the nominal GDP growth rate hit a low of 2.9 %.

[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.