Not exact matches
That means the Fed will likely have to get more, rather than less, aggressive in its efforts to «
normalize»
interest rate policy.
The Fed, Wednesday's statement notwithstanding, will likely have to get more, rather than less, aggressive in its efforts to «
normalize»
interest rate policy.
But with the Federal Reserve (Fed)
normalizing monetary
policy, higher
interest rates, and prospects for deregulation, the sector now seems poised for growth.
The BOE will refrain from raising
interest rates next week but is still set to start
normalizing policy, according to the institute.
We expect
interest rates to rise, as U.S. and eurozone monetary
policies gradually
normalize, though structural factors and further central bank divergence are likely to keep a lid on
rates.
The ECB is now about to embark on a similar adventure as the Federal Reserve is currently undergoing,
normalizing monetary
policy after years of quantitative easing and extremely low
interest rates.
The central bank didn't do anything to dispel market expectations that it will lift
interest rates in June, the seventh time for such a move since the end of 2015, as it aims to
normalize monetary
policy.
US Federal Reserve (Fed) Chair Janet Yellen gave the clearest indication yet that the central bank is likely to start raising
interest rates later this year when she said in a speech on July 10 that she expected it would be «appropriate at some point later this year to take the first step to raise the federal funds
rate and thus begin
normalizing monetary
policy.»
Central banks are struggling to balance a desire to unwind unconventional
policies and
normalize interest rates with a continued need for stimulus measures in most economies.
- Our
interest rate outlook implies that the Bank of Canada will
normalize monetary
policy both later and more slowly than the US Federal Reserve.
The first is a positive reinforcement between
interest rates and volatility that will overshadow central banks» attempts to
normalize policy rates.
Although U.S.
interest rates could stay lower than in previous
rate cycles as Fed
policy very slowly
normalizes, investors remain concerned about the impact of
rate increases on their fixed income returns.
At the same time, ruling out any increase in
interest rates while bond purchases are scaled back, in our view, signals ECB President Mario Draghi's determination to resist any political pressure to speed up the process of
normalizing monetary
policy.
As a result, we believe the Fed's ultimate target for
interest rates when
normalizing monetary
policy could remain relatively low, unless pricing pressures that are more typical of previous late - cycle economic expansions start to emerge.
He also offered a similar warning in July, citing the potential for a
policy mistake by the Federal Reserve as it looks to
normalize interest rates from ultralow levels in the wake of the 2007 - 09 financial crisis.
As the Fed continues to
normalize monetary
policy after a protracted period of artificially low
interest rates, yield - starved investors» concerns have shifted to worries over the impact rising
interest rates may have on their portfolio.
So, when governments and central banks debase their currencies, as in the»70s, the 2000s, and create conditions where real
interest rates are negative, gold flies in terms of the debased currencies, and then crashes back down if you get a Paul Volcker - type, and
policy normalizes after a lot of pain, which this generation seems unwilling to take.
We do expect
interest rates to rise, albeit at a very slow pace as U.S. and eurozone monetary
policies gradually
normalize.