«The theory is when you're in a rising interest rate environment, that's typically
a signal of a stronger economy, and that reduces default risk and improves the relative performance of those non-core fixed - income assets,» he says.
Not exact matches
Given these positive surprises, and because monetary policy must be forward - looking to achieve our inflation target, Governing Council's discussions focused on three main issues: first, the extent to which recent strength is
signalling stronger economic momentum in Canada and globally; second, how heightened levels
of uncertainty, particularly about US tax and trade policies, should be incorporated in our outlook; and third, how much excess capacity the
economy currently has, and the growth rate
of potential output going forward.
The early phase
of an increasing environment for interest rates tends to bode well for the sector because it
signals that the
economy may be
strong, unemployment may be down and consumers feel confident about spending money.
The whole point
of committing to a
strong policy is that it sends a
signal to the
economy of long term trends.
All
of this
signals that any reduction in CO2e emissions beyond around 1 percent per year would make it virtually impossible to maintain
strong economic growth — the bottom line
of the capitalist
economy.
«Confidence in the housing market and
economy is improving,
signaling a spring home - buying season that could easily be one
of the
strongest in years,» says Bill Banfield, executive vice president at Quicken Loans.
«With our local
economy thriving, the nominal predicted interest rate hikes are a
signal of our
strong national
economy, despite the inventory shortages.
«A
stronger economy could lead to a reconsideration
of this policy change if it is combined with
signals in the upcoming months that prices and wages are starting to rise faster.»