Sentences with phrase «tightening of monetary policy by»

We think the speculation about a potential future tightening of monetary policy by the ECB — whether in the form of a tapering of bond purchases or a rise in interest rates — has moved too far ahead of the economic and political realities within the eurozone.

Not exact matches

Specifically, there are concerns about what might happen should the tide turn in the bond markets when 30 years of falling interest rates reverses at a time when the Federal Reserve is preparing to tighten monetary policy by forcing rates higher.

The yield, a barometer for mortgage rates and other financial instruments, has jumped in April on signs of nascent inflation and as the Federal Reserve stood by its plan to gradually tighten monetary policy.

In other words, if you tighten monetary policy, certainly by more than is discounted in the market — and what's discounted in the market is very minor rising market — that will reverberate through asset class prices, as well as then you can have a situation in terms of the economy.

Indeed, in a classic paper written in the early 1960s, Mundell (Mundell, 1963) showed how, in a world of complete asset substitutability and perfect capital mobility, real interest rates would be largely determined by international market forces with the exchange rate moving in response to changes in domestic monetary policy to provide most of the desired accommodation or tightening.

In our March statement we indicated that our current monetary policy stance remained appropriate to achieve our 2 per cent inflation target on a sustainable basis by around the middle of 2018, whereas US authorities have now begun to tighten.

Measured across all loan products, and taking into account changes in customer risk margins, however, it seems that interest rates paid on average by small businesses have increased by a little less than the rise in interest rates directly due to the tightening of monetary policy.

Subsequently, with continuing strong activity indicators, stretched labour markets and signs of possible pipeline price pressures (although core consumer prices remain benign), the Federal Reserve tightened monetary policy by 25 basis points to 5 per cent in June and then 5.25 per cent in August (Graph 5).

Before late January injected a surge of volatility into equities, driven by investor fears over a handful of factors including rising rates, tightening monetary policy, more regulation on big tech and rising global trade tensions, investors were smooth sailing on the nine - year bull market.

This is significantly different from the garden - variety recessions after World War II that were primarily caused by Fed tightening of monetary policy in response to rising inflation and full resource utilization.

In terms, I think of inflation and bond markets, it took six, seven, eight, maybe 10 years of high inflation in the 1970s before you had Paul Volcker brought in to say «enough is enough,» and then again whether it's led by American monetary policy but similar moves in Europe, obviously in the UK, a significant tightening of monetary policy because people got fed up with inflation and I don't think that we are kind of yet at the point where real wages have been suppressed so much by that irritation that inflation is always running ahead, life is becoming more expensive, so we need the central bank radically to change their policy.

Oversea - Chinese Banking Corp. and ABN Amro Group NV see gold sliding to $ 1,100 an ounce by the end of next year as the Federal Reserve tightens monetary policy, real Treasury yields increase and the U.S. currency rises.

In Australia, as well as reflecting the favourable overseas developments, financial markets have been influenced by the run of strong local economic data, with the result that markets had begun to anticipate some tightening of monetary policy ahead of the Board's November decision, though a rise in cash rates had only been fully priced for the December meeting.

In 1845, the Bank of England tightened its monetary policy by raising interest rates, which has a tendency to pop economic bubbles as capital is no longer as cheap as it once was and now higher - yielding bonds become more attractive to investors again.

This is an incredible sign of resilience from a market that has recently been plagued by concerns of a trade war, data regulation, tightening monetary policy, abnormally high valuations, and more.

Although bond yields have already started to rise in recent months in anticipation of a reduction of monetary stimulus in the US, we expect future increases to be moderate in the face of what is likely to be a gradual pace of policy tightening by both the US and Canadian central banks.

Thirty - year fixed - rate mortgage interest rates will fall to about 6.7 percent by the end of 1999 and remain stable next year, despite the Federal Reserve's slight tightening of monetary policy beginning in the second half of 1999, he predicts.