Implied Rate

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Implied Rate

The interest rate as calculated from the difference between a forward exchange rate and a spot exchange rate.
References in periodicals archive ?
Implied rates continue to fully price in a 25 bp easing at the September 17, 18 policy meeting, and analysts expect the FOMC will again have to validate that outlook (the minutes are not written contemporaneously, but are updated after the meeting).
Implied rates have pushed back rate hike expectations to Q2 19, with the easing hike-premium keeping short-end rates down.
More recently, Scharff and Viscusi (2011) have found implied rates of time preference averaging 10% in their analysis of smokers, nonsmokers, and labor markets.
While the Bank has implied rates will stay on hold until at least 2016, markets are predicting a hike in the first quarter of 2015.
Therefore, CBR's FX swap rate will lose in importance as a driver of short end FX implied rates as no bank will be tapping this (by then) avery expensive' facility in the first place.
Detailed price indexes for nonresidential fixed assets and implied rates of depreciation for selected aggregates by industry are also included.
That is, the level and volatility of the 3-, 6-, and 9-month-ahead implied rates declined and stabilized after June 30.
He said the comments implied rates still had further to rise and could hit 4.5 per cent by the summer.
(3) As a result, by looking at the term structure of implied rates on federal funds futures, policymakers are able to assess market participants' expectations and understand what interest rate forecasts are implicit in other asset prices.
Yields remained a little cheaper as the market continued to weigh the prospects of no aggressive easing at the July 30, 31 FOMC, though implied rates remain positioned for a 25 bp cut.
While the Bank has implied rates will stay on hold until late 2016, markets have brought forward their forecasts for a hike to the first quarter of 2015.
Meanwhile, implied rates remain priced for about 62 bps in easing by the end of the year.