It said that growing inflation risks
and risks of economic cooling were forcing its hands.
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.
This dynamic of home prices indicates a gradual alleviation of the inflation pressures and reduction of the future inflation risks
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
However, notwithstanding the deceleration in growth, inflation risks
remain, which will influence both the timing and magnitude of future rate actions,'' he said.
The food deflation effect due to the new harvest will come to an end soon and inflation risks
persist from non-food items and services.
Talk has shifted from upside inflation risks
and possible rate rises to downside risks and, potentially, asset purchases.
The language used in the minutes suggests that upside inflation risks
were a slightly greater concern to the committee at the time of the meeting.
Summary: BEIRUT: A recent study released by Credit Suisse indicated that in emerging markets, particularly GCC countries, inflation risks
are growing, contrary to the case of industrialized nations where these types of risks remain moderate for now.