The fourth consecutive increase in the key police rate is reasonable as inflation risks
do not tend to subside.
The 2s-10s spread at +68 bp has flattened a couple bp, but is well out from narrows earlier in the year near +50 bp as inflation risks
are on the rise.
for 2018 and 2019 continue to be associated with the uncertainty regarding the expected movement of prices of primary products," the NBRM press release said.
The central bank signalled the end of monetary policy easing and said that it would now focus more on inflation risks
Despite the strong outlook growth, our view that the bigger focus this year will be on inflation risks
and the BSP's response remains well supported.
Fidelity said that before long-term inflation risks
materialize, advisors should do the following:
Russia's central bank cut its main lending rate on Friday for the first time in almost a year, signaling confidence that inflation risks
are declining and describing an economic recovery as "imminent.
Summary: Egypt's central bank made a surprise 50 basis-point cut in its main interest rates on Thursday, saying plummeting global oil prices had eased inflation risks
while economic growth was rebounding.
Lief Eskesen, HSBC's chief economist for India and ASEAN said, With inflation risks
still tilted to the upside, the RBI has to keep its inflation guards up and stand ready, if needed, to raise rates further to bring inflation under control.
Thus, inflation risks
will remain elevated in 2013, particularly if the leu falls back significantly against the euro.
Lingering inflation risks
The bank "is likely to tread very carefully -- given lingering inflation risks
," Eskesen added.
But the report notes that while the insurers' strategy has reduced exposure to sovereign default in the short term, it has also made balance sheets more susceptible to interest and inflation risks