Long-Term Interest Rate

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Long-Term Interest Rate

An interest rate on a financial instrument with a maturity of longer than one year. A long-term interest rate is usually (but not always) higher than a short-term rate because of the added risk of committing capital to a person or project for such a long period of time.
References in periodicals archive ?
The long-term interest rates set in bond markets have so much impact on business conditions that changes in investors' views can influence economic reality almost as much as vice versa.
Long-term interest rates of around 3 percent come nowhere near pricing in the Fed's inflation target of 2 percent plus the real economic growth of 2-3 percent that was likely to be achieved even before the Trump administration's big fiscal stimulus.
What's more important for life insurers are long-term interest rates, as they both hold and invest in long-term assets."
From a pension perspective, the story mid way through 2014 has been a tug-of-war between long-term interest rates and equity markets.
This may hurt global growth prospects as long-term interest rates rise globally over the coming months to adjust to this new post-QE world.
If QE tapering results in a significant rise in long-term interest rates as it has been the case in the last few weeks, this wealth effect could be reversed, leading to lower consumer confidence and a reversal of the US recovery seen so far.
Federal Reserve scaling back its stimulus on Japan's long-term interest rates, the minutes of their policy meeting last month showed Friday.
In response to his comments, stocks rallied, the US dollar dropped and long-term interest rates rose.
"Although they aren't complaining, what hasn't made much sense to healthcare borrowers is how long-term interest rates have managed to resist persistent efforts by the Federal Reserve Board to use monetary policy initiatives to nudge rates higher across the board.
Globalization is a major factor in the recent decline in long-term interest rates amid short-term rate increases, according to the September issue of the Federal Reserve Bank of Dallas' Economic Letter.
Most of the time, long-term interest rates are higher than short-term rates, reflecting the greater risk to the lender that comes with time.
However, complicating the situation for banks, long-term interest rates remained low as foreign investors bought up U.S.

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