Its very easy for homeowners to understand how lowering interest rates would help them personally.
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They will go for lowering interest rates if the policy does not increase the money supply.
Six months elapsed before the bank felt able (in February) to start lowering interest rates again.
The Fed may fall into the BOJ trap, gradually lowering interest rates while the economy still suffers dehydration.
However, high inflation and a wide current account deficit have constrained the central bank from lowering interest rates aggressively.
The Fed has already tried to goose economic growth by lowering interest rates.
So they're trying to focus on that piece of inflation that they can control by raising or lowering interest rates.
China still has many cards to play, including lowering interest rates, increasing bank lending and infrastructure spending and stimulating housing demand.
Second, Stiglitz says that the Fed hopes that lowering interest rates will increase stock values and lead to increased consumption among stockholders.
Our central bank should be lowering interest rates, not contemplating a boost.
The head of the central bank, Duvvuri Subbarao, wrote in a recent report that lowering interest rates would "only aggravate inflationary impulses without necessarily stimulating growth".
Broadly, the resolution of the Crisis involves a four-stage process: stabilizing the currency, lowering interest rates, restructuring the financial sector and, finally, kick-starting the economy.
When we take the Federal Reserve position of lowering interest rates, we have the perfect storm for runaway inflation and much higher metal prices in the future.
"I see no scope for lowering interest rates, " Pratip Chaudhuri, chairman of State Bank of India, the country's largest bank by assets, said at a separate press conference.
There are two sides to the housing bubble crisis in the U.S. The housing bubble was created by lowering interest rates even was housing prices continued to skyrocket.
Each time the government has taken a bullish step to stimulate the economy like lowering interest rates officials have continued to assert that property is too expensive for too many people.
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Even if Greece's official creditors give some leeway, by slightly lowering interest rates or rescheduling debt payments, the threat will remain that Greece will have to leave the euro.
Federal Reserve attempts to stimulate economic activity by lowering interest rates have been useless in the face of heavily indebted consumers and realistically-low expectations of sales on the part of firms.
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The general sentiment is that lowering interest rates will not help to cure what is really ailing European economies: ailing banks resulting in a dearth of credit for businesses and consumers alike.
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But much of the power of conventional monetary policy raising or lowering interest rates comes from changing the appetite for risk of consumers and businesses, prompting them to delay or bring forward spending plans.
Brazil has been lowering interest rates all year.
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The stimulation would be provided through further doses of quantitative easing as lowering interest rates further is a tool that has now pretty much been taken away from the Fed given the historic low level of interest rates today.
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And if the core economies of the West do worse than expected, China policy makers will have to act faster than they have so far at lowering interest rates or providing stimulus where needed unless China slip into even lower growth.
He thinks Greenspan is doing the right thing in these circumstances by lowering interest rates -- "It definitely levitated stock prices, " he says -- but he wonders if this will be enough to prevent the global slowdown from spreading to our shores.
While many emerging markets are seen as able to counter some effects of slowing economic growth by lowering interest rates or with fiscal stimulus, a European credit crunch could still have a meaningful impact because European banks had been big lenders in the developing world.
Over the past few months, India's consumer inflation has bucked a downtrend in wholesale inflation, constraining the central bank from lowering interest rates aggressively despite facing mounting pressure to make corporate borrowings cheaper and help stimulate an economy growing at its weakest pace in a decade.
Likewise, an increase in the value of the dollar against another currency likely indicates that the central bank of the other country is lowering real interest rates and diluting the purchasing power of that currency at a greater pace than the Fed.
According to this theory it is the artificial lowering of interest rates and creation of excess credit by a central bank's monetary policy that causes investors to erroneously believe that economic conditions are better than they actually are, leading to an abundance of overconfidence.
The government, as owner of mortgages and mortgage-backed securities, will be allowed to make loan modifications by lowering principal and interest rates on mortgages, or extending the life of the mortgage.
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