But full liberalisation of interest rates and the exchange rate must still be some way off given the fragility of the banking system.

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It suggests that the German interest rate should now be a full percentage point lower than that set for the euro area as a whole.

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Yet, although the full impact of the Fed's interest-rate cuts so far this year has still not been felt, looser monetary policy alone is unlikely to be enough to fend off recession.

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But instead of passing on that cut in full to its SVR customers, Abbey reduced its interest rate by just half a percentage point.

BBC: abbey

Federal Reserve Chairman Ben Bernanke, who thinks his main job is to create full employment in America, believes that a zero interest rate regime will stimulate investment.

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Andy expects one more interest rate hike before CPI cools to a full-year average of 4.5 percent.

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The company noted the raised earnings guidance reflected increased sales expectations and shares repurchased through June 30, interest on borrowings, and a lower full year tax rate.

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Others have found that the introductory period is too short for them to pay the debt in full, so they end up paying an even higher interest rate after the intro rate ends.

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