Exact(33)
Today, however, tax receipts are shrinking, making borrowing increasingly costly.
It hopes to entice investors by allaying fears of currency devaluation and by making borrowing more secure.
A sustained rise in interest rates would crimp growth by making borrowing more expensive for consumers, businesses and governments.
And higher yields on government debt can also push up interest rates on mortgages and other loans, making borrowing more expensive for consumers and homeowners.
WASHINGTON — The odds surely increased Friday that the Federal Reserve will ride again to the rescue of the faltering economic recovery, making borrowing a little cheaper for a little longer, as it has done repeatedly over the last four years.
The case against buyers of sovereign CDSs is that by driving up the price of insuring against default, they cause spreads on underlying cash bonds to widen, making borrowing more expensive and bringing default and a big payout closer.
Similar(27)
This makes borrowing money difficult.
Q: Will a downgrade make borrowing more expensive?
That could make borrowing more expensive for the government and add to its debt burden.
But Brazil's high interest rates of around 13% make borrowing costlier to service.
It is a level that unsettles markets, as it makes borrowing costs difficult to sustain.
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