Riksbank's Ingves Says Swedish Bank Stability Not at Risk From the Baltics Oct 1, 2009
25 percent presently, the information is all out there that when things normalize were going to move into a different world with much, much higher nominal interest rates than we have today, he said. It will take as far as we can judge quite a while to get there but eventually we will and this is important for people to realize. (Bloomberg -- Europe)
Brazil's Polo Hedge Fund Boosts Bets on Homebuilders Following 135% Surge Jul 29, 2009
You have nominal interest rates the lowest ever, more people with access to credit and a big government package, Duarte said in a telephone interview. The stocks have gone up a lot and just now are nearing book value. (Bloomberg -- Latin America)
It'stime to revampthe Federal Reserve Jul 25, 2009
In pursuit of its full-employment mandate, using aggressive monetary policy since 2001, the Fed has driven nominal interest rates to record low levels, making real interest rates largely negative. Low interest rates, in turn have fueled speculation by reducing its cost, resulting in a number of assets bubbles, the most prominent in housing. (Asia Times Online)
Pro & Con: Do consumers need a new financial protection agency? Jul 16, 2009
Giant lenders compete for business by talking about nominal interest rates, free gifts and warm feelings, she said, but the fine print hides the things that really rake in the cash. Today s business model is about making money through tricks and traps. (Atlanta Journal-Constitution -- Opinion)
BOB HERBERT: Consumers need help of this agency Jul 16, 2009
"Giant lenders compete for business by talking about nominal interest rates, free gifts and warm feelings," she said, "but the fine print hides the things that really rake in the cash. Today's business model is about making money through tricks and traps.". It should be clear by now that it is often the goal of financial institutions to see that the consumer is not well informed. (Fresno Bee -- Opinion)
* Was Greenspan wrong to keep interest rates low for so long? Jul 3, 2009
There is, however, a lively debate about whether there was a fourth big mistake: then-chairman Alan -Greenspans decision to push and keep nominal interest rates on US Treasury securities very low from 2001 to 2004 to try to keep the economy near full employment. In other words, should Greenspan have kept interest rates higher and triggered a recession in order to avert the growth of a housing bubble. (Taipei Times, Taiwan -- Business)
Japan's bubble trouble Jun 1, 2009
"Japan is facing the same problem as during the first half of the decade, when nominal interest rates hit zero, but this was still too high," says Richard Jerram, chief Japan economist at Macquarie Securities in Tokyo. "This is again the situation.". (Sydney Morning Herald -- Business)
The government bond glut May 28, 2009
That will in turn cause inflation, which will cause the market to re-price nominal interest rates upwards and long-term government bond prices correspondingly downwards. Even the most hawkish of the Fed governors, the Philadelphia Fed's Charles Plosser, talked last week only of an inflation problem that might lead to 4% inflation by 2012. (Asia Times Online)
TD Bank Financial Group Reports Second Quarter 2009 Results May 28, 2009
"While we have felt the impact of margin pressure as a result of low nominal interest rates, we've seen impressive online brokerage volumes and continued growth in new client assets. In the U.S., TD Ameritrade continues to maintain its leadership position in active trading and is growing net new retail assets faster than its largest peer." "And this quarter we continued to increase the number of client-facing advisors. This investment in our Wealth businesses through these tough times positions... (Canada Newswire)
Fed Should Fuel Faster Inflation to Help U.S. Economy, Mankiw, Rogoff Say May 20, 2009
That implies its inflation target has been too low because its left the Fed running up against the zero bound on nominal interest rates. Inflation Advantage. (Bloomberg)
Real Rate Shock Hits CEOs With Bond Borrowing Obstacles Impeding Recovery May 14, 2009
When the sale lease-back market began to recover toward the end of 2008, nominal interest rates of about 14 percent were too much to saddle us with for 20 to 40 years on $600 million of needed financing, Rickard said. I deferred that financing and we muddled through using commercial paper, Rickard said. (Bloomberg)
Property bubble 'set to burst' May 2, 2009
" He said an increasing number of buyers were investors "positively gearing" looking to make money from rent rather than declare tax losses, as in the past. He cited the Reserve Bank's latest financial stability report, which suggested that the substantial gap between incomes and house prices was permanent. The RBA said recent policy changes had brought "an environment of lower inflation and thus lower nominal interest rates" compared to previous decades. That encourages people to borrow and... (Sydney Morning Herald -- Business)
Fed's Kohn Says Emergency Lending Isn't Creating Risk for U.S. Taxpayers Apr 19, 2009
By aiming at 2, you have a little more room on nominal interest rates, a little more room to react to an adverse shock to the economy or better odds of stabilizing the economy, Kohn said. Clearer Objective. (Bloomberg -- US)
EU Business Group: ECB Rate Cuts Haven't Worked Mar 28, 2009
"Despite central banks' nominal interest rates reaching historically low levels, the real cost of financing for European companies has further increased since September and is too high to stimulate an economic recovery," BusinessEurope said in a report. The ECB has cut its main rate to 1. (SmartMoney)
Tatas' funding woes Mar 25, 2009
"The company can finance its working capital at nominal interest rates on booking amounts received for Nano," Brics Securities said in a research note. Also Read. (India Times)
SA faces a new evil Mar 9, 2009
Because nominal interest rates in the US are at zero, and heading that way in the rest of the developed world, deflation - by leading to a rise in real interest rates would increase debt in real terms. Given the huge rise in borrowing by households before the recession, the onset of deflation would be disastrous. (iAfrica.com)
* Inflation is not the risk, Japanese-style deflation is Mar 2, 2009
Moreover, even if prices on average exhibit some downward flexibility, deflation necessarily increases the real rate of interest, given that nominal interest rates cannot fall below zero. The result is an increase in the cost of capital to firms, which lowers investment and exacerbates the crisis. (Taipei Times, Taiwan -- Business)
Mythili Bhusnurmath: Capital flows Feb 25, 2009
Consequently, nominal interest rates are expected to remain higher in EMEs. A policy regime that encourages debt flows risks attracting a large volume of volatile short-term arbitrage funds even with flexible exchange rates. (India Times)
ECB'S Draghi Says Banks Shedding Toxic Assets `Welcome,' Rates Could Fall Feb 22, 2009
Worrying about getting too close to the lower limit for nominal interest rates cannot be a reason for inaction. . (Bloomberg -- Europe)
Microfinance cos sniff big biz Feb 17, 2009
"They get this money for nominal interest rates like 7% which they put in chit funds where they get returns of 30% or more. This is a big fraud on the system. A biometric identity card can ensure that benefits go to the right people," says V S Somanath of Nano Ventures, a MFI.. MFIs support income generating activities of its members including livestock, agriculture, trade (such as vegetable vending), production (from basket weaving to pottery) and new age businesses (beauty parlour to... (India Times, India -- Intl Business)
Buttonwood: A lament for savers Feb 13, 2009
Nominal interest rates may have fallen sharply. But they cannot fall below zero. (The Economist)
