Initially, investors were skeptical about
any further tightening of monetary policy in coming months, amid escalating tensions between North Korea and the United States, further soft inflation data and uncertainty about the potentially negative effects of hurricanes Harvey and Irma on the economy.
At its December meeting, as in earlier months, the Board judged that
a further tightening of monetary policy would probably be required in due course, but that there was no need for action in the short term.
Not exact matches
The Bank
of Korea left its key interest rate unchanged on Tuesday, as expected, taking note
of muted inflationary pressure and showing caution ahead
of any
further monetary tightening from the U.S Federal Reserve's
policy meeting on March 20 - 21.
Thus «the most reliable indicator
of the stance
of monetary policy, nominal GDP, is already showing the contractionary impact
of the Fed's
policy decisions,» says Lacey, «signaling that its plan will result in
further monetary tightening, or worse, even recession.»
Given the strength
of the US economy, the Federal Reserve has
further tightened monetary policy and financial markets expect this to continue.
The Fed looks set to
tighten monetary policy further, as inflation and unemployment move closer to its targets — underlining the strength
of the domestic economy — and surging equity markets have added to already elevated consumer confidence.
The US Federal Reserve (Fed) looks likely to
tighten monetary policy further, as inflation and unemployment move closer to its targets — underlining the strength
of the domestic economy — but, while awaiting more substance on
policy initiatives, we remain cautious about predictions
of an end to the pattern
of modest US growth seen in recent years.
We think the speculation about a potential future
tightening of monetary policy by the ECB — whether in the form
of a tapering
of bond purchases or a rise in interest rates — has moved too
far ahead
of the economic and political realities within the eurozone.
The recent
tightening of US
monetary policy has
further contributed to the narrowing
of differentials.
Subsequently, expectations
of further moves in
monetary policy were scaled back somewhat, reflecting the rise in the Australian dollar and indications from the Federal Reserve that
monetary policy in the United States was unlikely to be
tightened in the near term.
When markets wobbled, the Federal Reserve was loathe to
tighten monetary policy for fear
of causing a
further market decline which might hurt the economy.
At the time
of the increase, the market was also factoring in a
further tightening in
monetary policy over the next six months.