Before that, the consumer price index will be released at 8:30 a.m. and will be important if it brings any surprises, especially a lower - than -
expected pace of inflation.
Not exact matches
«It looks like it maybe calmed some nerves who maybe were
expecting a faster
pace of hikes because
of the rise in
inflation,» said Collin Martin, fixed...
Most analysts
expect the first rate hike to come in September
of this year, but that the
pace of subsequent rate hikes will be slow, taking into account continued middling economic growth and below - target
inflation.
The rise in the annual
inflation measures reported by the Commerce Department on Monday was anticipated by economists and Fed officials and is not
expected to alter the U.S. central bank's gradual
pace of interest rate increases.
«Beyond the near - term, a return to a more cautious communication strategy and
pace of interest rate increases is
expected in light
of the headwinds facing Canada,» including slow
inflation growth, Toronto - Dominion Bank Senior Economist Brian DePratto said in a research note.
The critical issue here is that even though
inflation rose and fell over the course
of the cycle, price expectations did not move — even when
inflation was running at 5 per cent, the community at large
expected it would soon be back to its normal lower
pace.
The rise in the annual
inflation gauges reported by the Commerce Department was anticipated by economists and Fed officials and is not
expected to alter the US central bank's gradual
pace of interest rate increases.
The central bank says it held off this time in part because it
expects the recent strength
of the Canadian dollar to slow the rise in the
pace of inflation.
With the UK economy gradually picking up
pace and
inflation rising on the back
of a weaker currency, the UK's central bank may finally go ahead with a rate hike for the first time in a decade, although it is widely
expected to leave the monthly government and corporate - bond purchases untouched at # 435 and # 10 billion respectively.
All in all, the Fed continues to
expect inflation to rise gradually toward 2 % over the medium term as the labor market improves further and the transitory effects
of energy price declines and other factors dissipate, but the
pace for hikes in interest rates could well be moderate, as the Fed has been indicating.
While that was one tenth less than
expected it is the quickest
pace of inflation since the VAT spiked
inflation in 2014 and 2015.
Inflation had remained stubbornly low over the past year, due largely to temporary factors like low cell plan phone prices, which stymied officials who
expected the very strong
pace of hiring would pressure wages and push prices higher.
In October, Central Bank Governor, Godwin Emefiele said he
expected inflation rates to fall at a faster
pace and reach the high single - digits by the middle
of 2018.
In its scheduled announcement, the central bank says it held off this time in part because it
expects the recent strength
of the Canadian dollar to slow the rise in the
pace of inflation.
«The Committee
expects that... economic activity will expand at a moderate
pace, labor market conditions will strengthen somewhat further, and
inflation will stabilize around 2 percent over the medium term... In view
of realized and
expected labor market conditions and
inflation, the Committee decided to raise the target range for the federal funds rate to 3/4 to 1 percent.»