It will be more politically tenable to inflate the debt away than to increase interest rates and taxes.
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The government knows this, so it does not want to increase interest rates to attract even more foreign inflows.
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One worry is that the ECB might start to increase interest rates before Spain has carried out the necessary reforms.
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Above all, cheaper oil would ease concerns about inflation, and so reduce the need for central bankers to increase interest rates.
By making it more expensive for the government to raise money, it would expand the deficit, unsettle financial markets, and increase interest rates.
It's not uncommon for a bank to increase interest rates on the customers they assume in a merger, said Erik Salmon, business credit advisor at BusinessCreditSuccess.com.
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There is even talk that the SNB might increase interest rates later this year (they are currently just 0.25%), something that would be bound to increase the franc's attractions.
The Fed talks about the stimulative effect of lower interest rates created by their purchases, but there is apparently no mention that higher inflation, when it occurs, would increase interest rates.
Any rise in the unemployment rate moves farther away from the level at which the Federal Reserves says it will begin to increase interest rates and ease its accommodative monetary policy.
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His action is aimed at lenders who increase interest rates for those locked in to mortgages for reasons such as "to maintain the profitability of the bank" or "in the interests of shareholders".
Normally a strengthening of inflation in an economy is a trigger for the central bank to increase interest rates, which in the US have been at the historic low of 1.75% since December 2001.
This week, Mr. Ahmadinejad approved an order that banks increase interest rates to 21%, from between 12.5% and 15%, to encourage Iranians to keep their capital in domestic banks, as Iranians hoard dollars and gold.
There is something to this: City economists were surprised by the scale of Mr Brown's spending plans, and some are now firmer in their belief that the Bank of England will increase interest rates again.
The Fed used to act pre-emptively, because if it waited until inflation began to show, it would be much harder to stuff the genie back in the bottle and the damage to the economy from having to increase interest rates was that much greater than it would otherwise have been.
Credit card rates would be likely to get caught up in such a general increase in interest rates.
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One reason may be their equally strong expectations for an increase in interest rates in the coming months.
As Rajan points out earlier its entirely possible that savings could increase as interest rates fell.
When seeking multi-billion dollar borrowings, even a modest increase in interest rates can prove problematic.
If inflation holds in the 5% to 7% range, a two percentage point increase in interest rates is realistic.
Stocks could rise or fall, depending on the relative growth rate of profits compared to the increase in interest rates.
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With inflation so tame, expectations among traders in the financial futures markets of an early increase in interest rates receded.
Investors have bid up the price of US bonds since the financial crisis, and when bond prices increase their interest rates decrease.
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Crowding Out, on the other hand, is about domestic government spending leading to an increase in interest rates and a decrease in private investment.
If the cost of mortgages were to rise because of an increase in interest rates, household incomes would be put under even more strain.
The Journal catalogs many possible horrible outcomes, including an increase in interest rates for the Treasury, households and firms, which could devastate our weak economy.
Investment banks' biggest worry is the steady increase in interest rates.
But his alternative anti-inflationary strategy a one percentage-point increase in interest rates over the next 12 months would surely further strengthen sterling, which is already hurting exporters.
While no increase in interest rates is expected, there is little doubt among investors that the future direction for the central bank s target rate will be up.
If even a small rise in taxes allowed a slightly smaller increase in interest rates, that would be welcome for a sector now feeling the pinch.
It will also have little effect on the velocity of money, which should actually increase even more as the increase in interest rates fuels even more inflation angst.
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