But, compared with last year, there is more concern
about inflation prospects.
Not exact matches
During a Saturday session at the symposium, such a slump in expectations
about inflation and
about other aspects of the economy was cited as a central problem complicating central banks» efforts to reach
inflation targets and dimming
prospects in Japan and Europe.
Mishkin noted «I am less optimistic
about the
prospects for core PCE
inflation to move much below 2 % in the absence of a determined effort by monetary policy,» adding that «a substantial further decline in
inflation would require a shift in expectations, and such a shift could be difficult and time - consuming to bring
about.»
Broadly speaking, central banks tend to increase interest rates when they become concerned
about the
prospects for consumer
inflation.
This year, Mr Mahama said, «we are going to bring it down to 5.3 %, then it means that
inflation will gradually come down; we are looking to bring
inflation back down to a single digit, then once
inflation is coming down, then interest rates will gradually follow, and, so, the
prospects look very good and I am very bullish
about the Ghanaian economy.»