In other words, interest rates are not
rising because of inflation fears, but because rates are starting to normalize from the unsustainably low levels reached earlier this year.
A lot of people think that Hitler
rose because of the inflation in the Weimar Republic, but Germany recovered well from the Weimar.
Not exact matches
«It looks like it maybe calmed some nerves who maybe were expecting a faster pace
of hikes
because of the
rise in
inflation,» said Collin Martin, fixed...
From that date, funding would be capped at the rate
of medical
inflation, a pace slower than the
rise in total health care costs
because it considers only prices, not how many visits or procedures folks are consuming.
This theory is why the Fed is thinking about raising rates even as
inflation has consistently fallen below its 2 % annual target,
because the central bank believes it needs to get ahead
of rising inflation that a falling unemployment rate will cause.
This week, Germany's business pages have been full
of little warnings about the Return
of Inflation, the biggest bogeyman in the Teutonic economic lexicon, all
because the annual consumer price index
rose to its highest level in over three years in December, a shocking 1.7 %.
Gundlach said he's been short on stocks all year and is «up tremendously» by avoiding or shorting certain consumer discretionary areas, such as rent,
because of rising inflation.
Treasury yields have been
rising not
because of rising risks but
because the asset bubble in bonds is deflating,
inflation is
rising, and investors are demanding more yield.
On Wednesday a board member
of the Bank
of Japan said that the central bank should stick with its ultra-easy monetary policy, despite recent signs
of economic recovery,
because uncertainty remains over how fast
inflation will
rise.
MOSCOW, Nov 17 (Reuters)- Russian
inflation will exceed forecasts to reach 9 percent by year end and
rise further in early 2015
because of the rouble's weakness, Economy Minister Alexei Ulyukayev told radio Ekho Moskvy on Monday.
They could
rise because of rising inflation or the expectation
of rising inflation.
Not
inflation, but this is interesting,
because of how your expression, gels, with those whose thoguhts are concerned for
inflation, when the world is still roughly at ZIRP, and essentially, is in a state
of suspended depression, where assets blow - up, due to savings glut, and a great excess
of money printing globally (on the back
of false
rises in asset pricing).
In addition, a
rise in long - term interest rates seems inevitable sooner or later, either
because of inflation or
because the Federal Reserve backs away from its easy - money policies.
Suppose Britain and Germany both export similar cars but their prices
rise 5 % a year in Britain
because of higher
inflation and just 2 % in Germany.
The central bank says it held off this time in part
because it expects the recent strength
of the Canadian dollar to slow the
rise in the pace
of inflation.
«Importantly, as long as rates are
rising because the economy is strengthening and
inflation is contained, it is reasonable to expect that the reversal
of QE will not be painful.»
Euro zone
inflation eased in June
because of more moderate energy price
rises, but the slowdown was less than expected by markets and the core measure
of price growth the ECB keenly watches increased by more than anticipated.
Second, rates
rose because of the improved economy, not
because of inflation which is around record lows.
The move comes in reaction to a post-Brexit surge in
inflation, largely
because of weakness in the pound sterling that resulted in
rising import prices.
There are those who are arguing that too much stimulus could raise the specter
of rising inflation,
because the economy is operating close to full capacity.
By this, I mean, if
inflation kicks in, interest rates should
rise, and homes will effectively be worth less
because of the decreased purchasing power.
The recently published minute
of the Fed's meeting last month showed some members
of the policy committee have argued for raising interest rates more quickly in coming months
because of strong economic growth, a robust job market and
rising inflation, which last month exceeded the Fed's target
of 2 percent.
So far, however, this has failed to translate into
rising consumer price
inflation,
because the strength
of the US dollar and falling prices for raw materials have offset higher labour costs.
The requirements for a moderate budget had
risen $ 1,200 in one year
because of inflation.
And
of course
because of rising exchange rates,
inflation which had reached as low as 7.8 % is today at 18.6 % all
of which combine to erode the purchasing power
of the average Nigerian... who still has a job and an income!
The RPI is expected to
rise to over 4 % this year, which, combined with the completion
of a 5 - yearly calculation
of rateable values, the BRC is expecting to damage businesses» profitability and their ability to employ,
because the rates are too heavily influenced by spikes in
inflation.
[98] He said that he had announced he was over-riding the normal requirement to link the
rise in benefits to the previous September's rate
of inflation; the benefits would have effectively been frozen
because inflation was negative at that point.
says a lot
of people are dipping into savings now... Let's hope that by April next year, the economy starts improving, that the economy is growing, that wages start
rising, that
inflation starts coming down,
because if those things are happening then some
of these pressures are more bearable.
Rachel Courtland reports that a paradox exists in the theory
of eternal
inflation, which gives
rise to the multiverse,
because...
When Congress increases the maximum Pell Grant faster than the rate
of inflation (which it tends to do over long periods
of time
because college prices
rise faster than
inflation) but does not make commensurate changes to the eligibility formula, more middle - income families qualify for a grant.
Outside
of that group, all
of the other countries currently have lower real rates relative to their pre-crisis average rate, either
because of low interest rates or
rising levels
of inflation, suggesting potentially sluggish global growth going forward.
That's
because the IRA contribution limit
rises in increments
of $ 500 based on the
inflation rate.
You also have an
inflation hedge in the Resources sector
of your portfolio,
because resource prices tend to
rise along with
inflation.
Many investors have talked about a «gold bubble» by arguing that gold prices are inflated
because of inflation and the Fed's money policy and that once interest rates
rise, the money supply will contract and gold will fall, but again, nobody can say with any reasonable accuracy what the fair value
of gold at any given point is.
And remember,
because of inflation adjustments, the annual amount will gradually
rise: it's already moved from the original $ 5,000 per annum to $ 5,500.
That's
because regardless
of whether you hold real estate or a stock portfolio, your equity will be impacted equally by
rising inflation.
My view
of the Fed is that they want to drag their feet,
because they see
inflation rising, so even if Fed funds futures indicate a 75 basis point cut, my current view indicates 50 as more likely, again, with language in the statement that indicates even - handed risks.
As a general rule, Resource stocks provide the most effective hedge against
inflation because they gain directly from the
rising prices
of the commodities they produce.
Because of the foregoing, costs have been
rising at rates in excess
of the
inflation rate in the general economy.
So, they advertise that they are paying you 7 - 8 % +, when they are really paying you 4.0 - 4.5 %, and exposing you to the risk
of inflation,
because that payment will never
rise.
In its scheduled announcement, the central bank says it held off this time in part
because it expects the recent strength
of the Canadian dollar to slow the
rise in the pace
of inflation.
This is
because interest received on cash savings is relatively low and it's unlikely to keep pace with
inflation (the
rising cost
of living).
From a sector perspective, energy, materials and financials make up more than a third
of the MSCI Europe Index.2 Many
of these companies tend do well when
inflation is
rising and bond yields are
rising because typically
inflation nudges up commodity prices and financial companies tend to profit when the yield curve steepens.
This is
because the dividend income usually
rises faster than the rate
of inflation, in diversified portfolios
of dividend paying securities.
They think Long - bond yields (green line) will
rise only
because of increasing
inflation (blue line), so that the yield
of RRbonds (burgundy line) will stay steady.
Bond returns
rise if interest rates
rise over the long term
because of higher reinvestment rates for cash flow, and again, it doesn't matter whether that comes from
inflation or real rates.
The Aussie quickly rebounded, however, likely
because «the assessment
of pricing pressures in the near term has not changed» and
inflation is still expected to gradually
rise, according to the RBA.
However, pound bears quickly faded the would - be rally, apparently
because of the BOE's dovish outlook on
inflation, which only warrants a «gently
rising path» for the Bank Rate.
Inflation is expected to remain low in the near term, in part
because of earlier declines in energy prices, but to
rise to 2 percent over the medium term as the transitory effects
of past declines in energy and import prices dissipate and the labor market strengthens further.
Inflation is expected to remain low in the near term, in part
because of earlier declines in energy prices, but to
rise to 2 percent over the medium term as the transitory effects
of declines in energy and import prices dissipate and the labor market strengthens further.