Are higher global interest rates a thing of the past?

Floyd, David
June 2006
Management Services;Summer2006, Vol. 50 Issue 2, p24
This article explores the reasons behind interest rate hikes and whether it is likely to continue in the future. Increases in prices and the rate of inflation often lead to interest rate rises. Inflation can result from increasing supply costs. The recent increase in the price of oil by 50 percent for U.S. citizens led to small increases in interest rates from one to almost five percent in 2005. Most countries globally have followed the policy of the American dollar currency in order to help reduce inflation in other countries. There are other factors that have led to lower inflation. There has been a commitment by more countries to opening up markets and adopting sound economic policies.


Related Articles

  • Still a slippy pole. Steyn, Greta // Finance Week;5/24/2004, p75 

    Focuses on factors that affect the global economic relations of South Africa. Purpose of increasing oil prices; Reason behind the difficulty of forecasting price increases; Impact of the rise in U.S. interest rates on global markets.

  • Another Pass-Through Bites the Dust? Oil Prices and Inflation. De Gregorio, José; Landerretche, Oscar; Neilson, Christopher // Economia;Spring2007, Vol. 7 Issue 2, p155 

    The article focuses on a study that investigated the evolution of the pass-through of changes in oil prices to general inflation for a broad number of countries in order to quantify the decline in the impact of oil price hikes on general price levels worldwide and to evaluate hypotheses that...

  • East Asia inflation a check on region's high-performing economies. Sanders, Sol W. // East-Asia-Intel Reports;1/30/2008, p8 

    This article analyzes the soaring inflation in high-performing economies in Asia in 2007. According to the author, Japanese inflation doubled in December due higher oil prices. He also finds that the central bank of South Korea is coming under growing pressure to cut interest rates as higher oil...

  • Supply Shocks, Sticky Prices, and Monetary Policy. Rotemberg, Julio J. // Journal of Money, Credit & Banking (Ohio State University Press);Nov83, Vol. 15 Issue 4, p489 

    This article examines how supply shocks and sticky prices impact monetary policy. Specifically, the author investigates the influence that an oil price increase has on an economy made up of firms that choose not to change their prices. The author shows that this type of inflationary price...

  • You can't rig oil. Preece, Howard // Finweek;6/26/2008, p51 

    The article focuses on the increasing price of oil and the growing demand in developing countries. According to the author, consumer countries cannot escape paying the huge oil bills by any mix of monetary and fiscal policies. He points out that if inflation is rising, it calls for increased...

  • MALAYSIA.  // Global Finance;Oct2004, Vol. 18 Issue 9, p76 

    This article presents information on economic conditions in Malaysia. A 7.8% GDP expansion in the first half of 2004-well above even official forecasts of 6.5%-confirmed that Malaysia's economy is on a solid footing despite the mixed blessing of high oil prices. Exports of other goods, coupled...

  • NBS Relaxed About Gas Price Hike.  // Emerging Europe Monitor: Central Europe & Baltic States;Oct2005, Vol. 12 Issue 10, p9 

    Upcoming hikes in gas prices charged to households are not expected to have a dramatic or lasting impact on inflation. BMI View: However, residual uncertainty about the possible second-round effects of the hikes, combined with high oil prices, buoyant domestic demand, and potential currency...

  • Oh dean the economy is interesting again. Portillo, Michael // Mortgage Strategy;9/5/2005, p20 

    This article reports on the decision taken by the British Monetary Policy Committee to cut interest rates by 0.25% to 4.5%. The rate cuts, though widely expected, had been secured only on a five-four vote. For the first time the governor of the Bank of England was among those out-voted. Since he...

  • INDONESIA KEEPS EYE ON INFLATION. Lazell, Mark // ICIS Chemical Business;1/16/2006, Vol. 1 Issue 2, p13 

    The article reflects on the efforts of the Indonesian government to lower the country's inflation in 2006. It argues that the decision of the Central Bank not to raise its benchmark interest rate does not necessarily ensure the decrease in inflation. It contends that the government will have...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics