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“The hurdle rate for our investments has gotten higher. And that means that some initiatives what that requires substantial capital will be slowed. We have to make sure our unit economics work before we go big.”

“Investors’ expectations of the stock market now have risen and it just means the hurdle rate is higher for positive surprises,” Lerner said.

The Bank of England sets each bank its own hurdle rate.

With a higher weighted-average cost of capital, the hurdle rate for new investments increases and fewer investments are chosen with today's net present value, discounted ROI models.

The role of monetary policy has always been to let investors take more risk by lowering the hurdle rate of the economy.