Tag: interest rates
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Fed Policy: Why Do Rates Hikes Hurt Stock Markets? On December 18th, the Federal Reserve announced a rate hike of 25 basis points. For the U.S. economy, this is the fourth increase of 2018 and it brings the Fed funds rate to a range of 2.25% to 2.5%. The move came despite strong opposition from…
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Net Present Value and Sensitivity to Interest Rates This post continues a discussion about cash flow and net present value which you can read by clicking on the specific links. This post deals with a major factor on NPV which is the fluctuating interest rate. This variable can change outlook in a hurry. The NPV…
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The Bank of Canada announced today a drop in the interest rate to 1.5% which is the lowest in fifty years to 1.5 per cent this morning. The mark also represents the first time since the global economic slowdown began in September that the central bank has stated Canada is in a recession. However, the…
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