So 4.0% is very conservative as an estimate of borrowing cost for small business.
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While the benchmark borrowing cost may have risen, the central bank left the bank rate unchanged at 6%.
On Thursday, Spain's borrowing cost at an auction of 10-year bonds was almost 7%, which is a level seen as unsustainable.
Following the auction, the borrowing cost for the country implied by market prices rose further, with yield on 10-year Italian bonds rising to 6.77%.
The Central bank took action, created a deluge of liquidity by printing massive amounts of money and bought treasury bonds as a strategy to keep borrowing cost low.
Because there are fees to do this, the council lowered the gold return over the time period studied and used a short-term cash rate as a benchmark for the borrowing cost.
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The reliance on low interest rates to spur activity was exemplified in the weekly MBA mortgage activity indices where a challenged housing market failed to spark either purchase or refinancing activity despite a slide in borrowing cost last week.
Berlin has balked at the idea, which it believes would weaken incentives for heavily indebted governments to get their finances in order, and would put Germany on the hook for other countries' debts and therefore increase Germany's own borrowing cost.
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The traders in Frankfurt were suspended over Euribor - a benchmark rate based on the rate at which banks based in in the eurozone can borrow, in contrast to Libor which is based on the borrowing cost of London-based banks.
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There is now a massive gap between the government's current cost of borrowing and the cost for anyone else.
It leaves the decision whether to use further borrowing, cost-cutting or new taxes to pay it clearly in the hands of the legislative branch.
Our elected officials now are refusing to surrender the half trillion dollars a year of low cost borrowing power that the reserve currency curse provides.
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In a seemingly direct inverse of the price move, the volume of shares being borrowed has also climbed by 30% since the rumour, while the cost borrowing Netflix stock jumped from just 0.78% on an annualised basis, to 4.4%.
The fear of losing the opportunity to finance government operations through borrowing was enough to keep anyone from so much as mentioning the idea lest lenders get nervous and raise the cost of borrowing.
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And bad debt ratings mean the cost of borrowing money goes up and profits drop.
The corollary, of course, is that the states' cost of borrowing is inordinately high.
Higher interest rates and a succession of credit rating downgrades have increased GMAC's cost of borrowing.
Some people use the debt to make more money than the cost of borrowing the money.
That would lower the cost of borrowing for some and increase it for others.
Look for a devalued currency and a very long period of hardly any cost of borrowing money.
Some say that a formal debt-restructuring system will raise the cost of borrowing and frighten skittish markets.
Hungary is one notch above so-called "junk" status, meaning its cost of borrowing could soar without help.
Spain has seen its cost of borrowing fall by more than two percentage points since the summer.
Greece, which is heavily in debt to foreigners, has a high cost of borrowing (see chart 2).
Since much lending is benchmarked to Treasury rates, the cost of borrowing is increasing across the economy.
The cost of borrowing money overnight peaked at 26.5% in 2003 and is now down to 12%.
These indicate a country's cost of borrowing and reflect how nervous investors feel about lending to them.
If governments do nothing, their credit ratings could be damaged and their cost of borrowing could rise.
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Usually it's higher interest rates, and the cost of borrowing has played a role in the current slowdown.
It cut interest rates twice last year, to bring down the cost of borrowing for consumers and businesses.
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