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Italy could withstand interest rates at this level longer than weaker countries like Greece, analysts say, and there are a number of things that may yet happen to ease the crisis — for example, if Italy elected a new government credibly committed to fixing its debt woes and restarting growth.
One of the lessons of the new-era stock surge and the plunge that followed last year is that certainty got out of hand: certainty of a new era, certainty that the technology sector could withstand interest rate increases and certainty that corporate earnings growth would hold up.
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It was certainly strong enough to withstand an interest rate rise or three, said its economists.
The relentless decline in share prices in recent days is an embarrassing blow to the governor of the bank, Masaru Hayami, who declared in August that the Japanese economy was healthy enough to withstand higher interest rates.
The surveys suggest the economy grew by 0.5% in the fourth quarter, and the loss of momentum towards the year end will no doubt fuel worries that the upturn is too fragile to withstand higher interest rates".
Nor does it seem all that likely that after just six months, Carney will move to the much looser form of forward guidance used by the Federal Reserve and the European Central Bank, where policymakers gauge whether the economy is strong enough to withstand higher interest rates.
Nor does it seem all that likely that after just six months, Carney will move to the much looser form of forward guidance used by the Federal Reserve and the European Central Bank, where policy makers gauge whether the economy is strong enough to withstand higher interest rates.
Strengthening foreign demand could give growth the momentum it needs to withstand rising interest rates.
Another is because of its symbolic value: finally, the Fed believes that the economy has recovered enough from the recession that it can withstand an interest-rate hike without damage.
Fannie Mae and Freddie Mac say they are well run, closely regulated and sufficiently capitalized to withstand a large interest rate move.
Growing anxiety about whether banks can withstand continued low interest rates and fears of a re-run of the 2008 financial crisis continued to stalk markets when shares fell to a three-year low and bank shares remained volatile.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com