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Blob

Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

A wide variety of market factorscan causeinterest rates to rise , including central bank

the weak state of demand in the global economyhas promptedcentral banks to push interest rates lower

A wide variety of factorscan causeinterest rates to rise ( e.g. , central bank

the impact is very strongcausesa change in central bank interest rates

which conducts market operationsto setinterest rates for the US central bank

An economy ... higher inflation , ... , which tends to reduce economic growthprovokesthe central bank to raise interest rates quickly

higher inflation , ... , which tends to reduce economic growthprovokesthe central bank to raise interest rates quickly

the marketsetsinterest rates independent of central bank policy - making

rising inflationpromptedthe Central Bank to raise short - term interest rates

Concerns about persistently low inflationcontributedto the U.S. central bank keeping interest rates

too low(passive) being setcentral bank interest rate policy

not whetherwould causethe central bank to start raising interest rates

inflation in consumers price indexinfluencescentral banks policy of interest rates

an effortto setcentral bank interest rate policy

The fallspromptedthe country 's central bank to cut interest rates

in turnledto Central Bank intervention in raising interest rates

an eye ... any news flowmight influencecentral bank interest - rate policy

improving economic datawill leadcentral banks around the world to raise interest rates

deflation worriescausedcentral banks to adopt negative interest rates

inflationcausesthe central bank to raise real interest rates

expectedto leadthe Central Bank to cut interest rates

the large emerging marketshas promptedan interest rate rise by the European Central Bank

further strength in the eurocould causethe European Central Bank to cut interest rates

This environmentmay causethe central bank to cut interest rates

the inflation pressureswould causecentral banks to lift interest rates

rising inflation in the UScould promptcentral banks to raise interest rates

However ,should ... promptcentral bankers to raise interest rates

Inflation ... the levelmight promptthe central bank to raise interest rates

inflationcausescentral banks to raise rates

Inflationcould actually causeCentral Banks to raise rates

Rising inflation rateswill causethe central bank to increase interest rates and

inflationcausesthe central bank to raise interest rates

inflationwill causecentral bank to raise interest rates

inflationary pressures in 2005causedthe central reserve bank to raise interest rates

the country 's deficit ... soaring inflationhas promptedthe central bank to raise interest rates

Labor policycausingbanks to raise interest rates

that fearswould ... causecentral banks to lift interest rates

in turncould leadthe central bank to raise interest rates

the potentialto influencecentral bank interest rate setting

Increased spendingwould causethe central bank to raise interest rates

banksprovokesbanks

in softer growthresultingin softer growth

sinceinfluencesince

too low for too longbeing settoo low for too long

too lowbeing settoo low

a decline in equity and bond prices ... thus diminishing the value of potential loan collateral and curbing the ability of enterprises and households to take out loanscausesa decline in equity and bond prices ... thus diminishing the value of potential loan collateral and curbing the ability of enterprises and households to take out loans

hyperinflationcauseshyperinflation

in low capital formationcould resultin low capital formation

to a recovery in values around the world ... and that prices are now rising in 18 of 23 countries tracked and are overvalued compared with long - term averages relative to rents in 17 out of 20 countries for which data is available and to disposable income in 14 out of 20 countrieshave ledto a recovery in values around the world ... and that prices are now rising in 18 of 23 countries tracked and are overvalued compared with long - term averages relative to rents in 17 out of 20 countries for which data is available and to disposable income in 14 out of 20 countries

to lower interest rates on your cash savings , which could encourage you to move your money into bonds or stocks to generate a higher returnleadto lower interest rates on your cash savings , which could encourage you to move your money into bonds or stocks to generate a higher return

to less debt because the economy contracted and their were few projects for which there was both supply and demand for lendingmight leadto less debt because the economy contracted and their were few projects for which there was both supply and demand for lending

credit availabilityto influencecredit availability

to a fall in commercial bank rateswill leadto a fall in commercial bank rates

bond prices to fallcausesbond prices to fall

throughout an economyto influencethroughout an economy

markets to dropcausingmarkets to drop

the value of the exchange rate to fallcausethe value of the exchange rate to fall

headaches for elected officialscan causeheadaches for elected officials

Longer - term bond yields(passive) are influenced byLonger - term bond yields

to a misallocation of capital and that Central Banks control theleadsto a misallocation of capital and that Central Banks control the

to a misallocation of capital and that Central Banks control the . today ... andleadsto a misallocation of capital and that Central Banks control the . today ... and

banks and consumer finance firmspromptingbanks and consumer finance firms

to a misallocation of capital and that Central Banks control the money supply via reserve creationleadsto a misallocation of capital and that Central Banks control the money supply via reserve creation

to achieve an equilibrium in money markets between price stability and supply of savings versus demand for creditare ... setto achieve an equilibrium in money markets between price stability and supply of savings versus demand for credit

the economycould causethe economy

a market failurecausesa market failure

Euro movementcould ... causeEuro movement

to excess investment in long - term assetscan leadto excess investment in long - term assets

consumers and companiespromptedconsumers and companies

to excessive volatility in market interest ratescan leadto excessive volatility in market interest rates

the business cyclecausethe business cycle

through its targeted federal funds rateinfluencesthrough its targeted federal funds rate

consumers and companies to borrowpromptedconsumers and companies to borrow

to low inflationwill ... leadto low inflation

and monetary policyare setand monetary policy

a market failurewill causea market failure

the stage for economic downturnssetsthe stage for economic downturns

to lower growthpotentially leadingto lower growth

this yearhas ledthis year

to a contraction in creditcan leadto a contraction in credit

Blob

Smart Reasoning:

C&E

See more*