Sentences with phrase «risk by raising the interest rate»

The reasoning behind this is that a loan with a 5 % down payment is considered high - risk, and they'll cover that risk by raising the interest rate accordingly.

Not exact matches

All three of these reasons — evidence that U.S. monetary policy is currently only moderately accommodative, the fact that U.S. financial conditions have been influenced by economic and financial market developments abroad, and risk management considerations — argue, at the moment, for caution in raising U.S. short - term interest rates.

In «The Dangers of an Extended Period of Low Interest Rates: Why the Bank of Canada Should Start Raising Them Now,» published by the C.D. Howe Institute, Masson argues there is urgency for the Bank to act in view of the economic distortions and financial risks low interest rates pose forInterest Rates: Why the Bank of Canada Should Start Raising Them Now,» published by the C.D. Howe Institute, Masson argues there is urgency for the Bank to act in view of the economic distortions and financial risks low interest rates pose for CaRates: Why the Bank of Canada Should Start Raising Them Now,» published by the C.D. Howe Institute, Masson argues there is urgency for the Bank to act in view of the economic distortions and financial risks low interest rates pose forinterest rates pose for Carates pose for Canada.

Other risks mentioned by the Report include fluctuations of interest rate and exchange rate; instable oil and commodity prices; deepening credit crisis; raising Sino - Canada trade friction; unfamiliar investment restrictions, laws and policies; crime and public safety, etc..

It would avoid the risk of a tax giveaway that hurts the economy by raising interest rates and magnifying the deficit.

To be sure, you have comported yourself as a consistent moderate, backing the consensus crafted by Janet Yellen that interest rates should be raised slowly so that labor markets can recover, that risks to financial stability are muted, and that new regulations make the economy safer.

This outperformance is expected to continue as the Fed appears reluctant to risk choking off the nascent economic recovery by prematurely raising interest rates.

The federal government needed to raise the $ 14.3 trillion debt ceiling by an Aug. 2 deadline or risk defaulting on its debts, which would send interest rates soaring — and continuing to soar since a higher debt ceiling could devalue the U.S. dollar, analysts have said.