Natalia Orlova, head economist at Alfa Bank, said the central bank might now take more
time over interest rate cuts that could boost growth: «Based on economic logic... it seems to me that it is dangerous to hurry with a rate cut in such uncertain conditions.»
Not exact matches
Important factors that could cause actual results to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the
timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost of accommodating, announced increases in the build
rates of certain aircraft; 6) the effect on aircraft demand and build
rates of changing customer preferences for business aircraft, including the effect of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange
rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals for the consummation of our announced acquisition of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the impact of future discount
rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase price for our announced acquisition of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect of changes in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit
ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment of
interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher
interest payments should
interest rates increase substantially; 27) the effectiveness of any
interest rate hedging programs; 28) the effectiveness of our internal control
over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks of doing business internationally, including fluctuations in foreign current exchange
rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other things.
He said economic progress had made the bank more confident that higher
interest rates would be required
over time, although some monetary policy accommodation will still be needed.
Sure, the world has changed
over the last 90 years, but that
time period does include periods when
interest rates were every bit as low as they are today.
«As
interest rates begin to rise
over time, financial institutions will find it necessary to pass along their increased costs in the overall cost of credit to small business and commercial customers.»
The debate
over interest rates has been raging for some
time now, but that doesn't mean they have to move higher.
Compared to the average discounted
rate on five - year mortgages
over the past five years, which according to ratehub.ca is about 4.25 %, Shearer will have saved about $ 18,000 in
interest and owe $ 6,000 less by the
time his mortgage expires.
The other is that if a homeowner opens a HECM credit line, but doesn't use it right away, it can earn
interest over time, at the prevailing mortgage
rate plus 1.25 %.
«The people not paying attention are those who bought in the 1980s and 90s when
interest rates went
over 20 % and spent most
time in the double - digits,» Masching said.
The bank also reiterated that more
interest rate hikes will likely be necessary
over time, but that the governing council will remain cautious when considering future decisions.
This is where crowds lend their money in small increments to project owners via the platform and expect repayment
over time with some fixed
rate of
interest.
For example, a 10 to 15 percent cash advance
over a 90 day period will carry up to 10
times the
interest rate charged by most banks.
Interest rates will inevitably rise, as the Bank of Canada keeps pointing out, and the federal government has instituted numerous changes
over the past few years that will make a home purchase more difficult for first -
time buyers.
To be sure, low
interest rates mean that annuity payments, including those from QLACs, are relatively modest now and investors run the risk that inflation will eat away at payouts
over time.
Powell is expected to gradually raise
interest rates three to four
times in 2018 — with the market watching closely
over what he might do.
«This progress reinforces governing council's view that higher
interest rates will be warranted
over time, although some monetary policy accommodation will still be needed to keep inflation on target.»
If
rates are rising, borrowers typically seek to lock in lower
rates of
interest to save on
interest rate costs
over time.
Unlike traditional bond funds, a DMF's price sensitivity to changes in
interest rates declines gradually
over time, approaching zero near the fund's target end - date.
Imagine their surprise when investors in a small business I once worked for received the company's internal loan repayment spreadsheet, showing that the business owner was pulling out bucks by paying his family exorbitant
interest on loans while investor loans were repaid at rock - bottom
rates over as long a
time period as possible.
Typically retail firms roll
over debt to buy
time, but
interest rates have risen since the last set of buyouts several years ago, making that prospect more expensive.
The bank reiterated that it expects further
interest -
rate hikes to be necessary
over time and that it will follow a cautious, data - dependent approach when weighing future decisions.
When
rates are rising
interest rate risk is higher for lenders since they have foregone profits from issuing fixed -
rate mortgage loans that could be earning higher
interest over time in a variable
rate scenario.
The new loan could have a lower
interest rate, both fixed and variable are offered, which could save the borrower a significant amount of money
over time in
interest payments.
The risk premium is far from stable
over time, but it's reasonable to assume that lower
interest rates should -LSB-...]
This is because most private student loan lenders offer extended repayment plans and variable
interest rates that seem lower at the onset of a loan refinance, saving borrowers money on their monthly payment as well as on the total cost of borrowing
over time.
The speech makes clear that the Bank's monetary policy frameworks centres around a flexible inflation target that aims to deliver an average
rate of inflation of between 2 - 3 per cent
over time and in a way that best serves the public
interest.
If
interest rates rise
over time due to market fluctuations, then these
rates have the potential to be substantially higher than the
rates for fixed
interest rates loans.
Obviously it's not desirable to have an
interest rate that changes
over time (unless it's going down) since it will affect both the total cost of funding as well as your ability to manage your cash flow.
I don't know exactly what's going to happen, but simple math based on the current level of
interest rates leads me to believe that these risk premiums will be much wider in the future
over longer
time frames than they've been in the recent past.
Since no one can predict where
interest rates are going
over any reasonable
time frame, I'm more
interested in how these securities will perform
over the long - term, since that's where investors should be focusing their
time and efforts.
Residential investment did increase
over the second half of 2009, boosted by relatively low mortgage
interest rates, lower home prices and the first -
time home buyer tax credit.
However, there is the risk that the variable
interest rate will be much higher if the average student loan
interest rate has risen significantly after the set period of
time is
over.
In theory, you could hold an individual bond to maturity and never lose any money even though the market value of the bond may fluctuate based on changing
interest rates and other factors (but you could still lose out to inflation
over time).
Conditional on this economic projection, we choose a path for
interest rates that will keep projected inflation on target or bring it back to target
over a reasonable
time frame.
Over the past decade, there have been
times (such as in 1988) when higher
interest rates have pushed up the exchange
rate (i.e. a positive relationship between the two), but there have also been episodes (such as in 1985 and 1986) when a weakening exchange
rate caused the Bank to raise
interest rates (a negative relationship).
Moderate
interest rates were associated with a whole range of subsequent returns
over the following decade, and we know that those outcomes were 90 % correlated with the level of valuations at the beginning of those periods (on reliable measures such as market cap / GDP, price / revenue, Tobin's Q, the margin - adjusted Shiller P / E, and others we've presented
over time - see Ockham's Razor and the Market Cycle).
The
interest rate on the U.S. government's 10 - year Treasury fell below 2 percent on Tuesday morning for the first
time since mid-October, as fears
over global growth led a flight to safety.
For example, you might choose to pay off your student loans that have the highest
interest rates first so that you can pay less money
over time.
Unlike traditional bond funds, a DMF's price sensitivity to changes in
interest rates declines gradually
over time, approaching zero near its target end date.
A higher credit score gives you a better chance for a lower loan
interest rate — which could save you thousands of dollars
over time.
But it is
interest rates over a two - year
time horizon which should determine whether the project goes ahead or not.
And by lowering your
interest rate, you can put more of your hard - earned cash towards the principal balance while saving thousands of dollars in
interest charges
over time.
Interest rates usually vary
over time based on prime.
The Fed previously had signaled it plans to raise
interest rates two more
times this year, but some observers have expressed concerns that the tightening monetary policy would accelerate
over fears of inflation.
A variable
rate might be lower to start with, but the
interest rate might go up later, costing you money
over time.
As a general rule, a short - term loan will have a higher periodic payment, but a lower total
interest cost of the loan when compared to a longer - term loan — even if that loan includes a lower
interest rate, because the business is paying
interest over a longer period of
time.
Looking back
over the Hansard of the last meeting in May 2001, I see that I was explaining why we had lowered
interest rates three
times (in February, March and April).
Keep in mind, though, that a longer payment term can mean more
interest paid
over time, even though the
rate is lower.
This transformation might explain why the performance of consumer discretionary stocks when
interest rates are rising has improved
over time.
Over that
time, the
interest rate remains the same which makes it easier to budget those monthly payments.