Sentence examples for real cost of borrowing from inspiring English sources

As the OECD points out, the real cost of borrowing for American companies with a BBB credit rating averaged under 3% in the five years before the crisis.

And, as Japan showed, once inflation turns negative, the real cost of borrowing rises because nominal interest rates cannot fall below zero.

Not only are consumer prices rising more slowly than the central bank's target, but lower expectations for future inflation mean that the real cost of borrowing (nominal interest rates adjusted for expected inflation) has risen.

Although many firms, particularly state-owned ones, benefit from cheap loans, the average real cost of borrowing across the whole economy is much higher, so this distortion is more likely to lead to a misallocation of investment than to excess overall investment.

Deflation can reduce personal consumption as people wait for prices to fall further, and discourage investment because it can raise the real cost of borrowing.

With prices rising, the real cost of borrowing has turned negative, a crucial central-bank goal to help the recovery.

Deflation would automatically raise the burden of existing debt and also push up the real costs of borrowing.

Hit the "calculate" button to get the APR, which will be different from the interest rate and represents the real cost of the loan based on the total amount borrowed.

Schools must be required to do more to educate students about the real cost of their education and about a complex borrowing process that even the most sophisticated people have trouble understanding.

Companies borrowing in the bond market could more accurately pin down the real cost of financing their investment projects.

Meanwhile, with real interest rates very low — actually negative on 5-year bonds — the cost of borrowing now in terms of future debt burden is also very low.