Exact(9)
Housing prices have soared in many parts of the country, as lower interest rates allowed buyers to bid up prices while keeping their monthly payments low.
But sales proved surprisingly strong in the spring as lower interest rates helped auto sales, and automakers began to schedule longer hours at factories again.
Istanbul soared by 26.3% as lower interest rates and plans to reform the banks boosted the market out of its crisis-induced slump of late last year.
Some investors maintained that retailers might see more sales gains in the second half of the year as lower interest rates, the tax cut and more pronounced economic recovery spur spending.
But it also spells hardship for final-salary-based pension funds, as lower interest rates mean investments will not grow as much to meet the bill for paying future pensioners.
If QE works as advertised, the decline in the exchange rate will eventually narrow the US trade deficit and reduce the US demand for global savings (though that will be offset as lower interest rates boost domestic investment and consumption).
Similar(46)
India's real-estate market has suffered from too much supply and low sales, but the government wants to give it a boost with an ambitious new program that aims to make housing affordable for all people by 2022 by investing $2 trillion in real estate over the next eight years, as well as lowering interest rates on home loans.
If a company's business seems to depend on a market distortion (such as lowered interest rates or so-called "protection" from business practices that suppliers and customers actually prefer), consider whether the subsidy or "protection" is affordable and justifiable enough to be sustained well into the future.
In 2001, the economy was cushioned by a large fiscal boost, thanks to tax cuts and bigger spending, as well as much lower interest rates.
Moreover, under its new president, Mario Draghi, the European Central Bank appears willing to do anything necessary to reduce stress on the eurozone's banking system and governments, as well as to lower interest rates.
Taken together, the data confirmed a picture that has been emerging over the past few months: buoyed by a huge stimulus package announced a year ago, as well as by lower interest rates and greatly increased lending by state-owned banks, China has recovered much more forcefully than other leading economies.
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Justyna Jupowicz-Kozak
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