As rates rise, watch gold for a move up on perceived
future inflationary pressures.
Not exact matches
Business surveys report that current
inflationary pressures have firmed over the past quarter, and that expectations of
future price growth are also being adjusted upwards.
Unless central banks move beyond quantitative easing and actually print money to directly finance consumption or public investment, debt tends to be disinflationary, as high debt levels can calcify potential
future growth and
inflationary pressures.
The monetary authorities of the US and Japan have reiterated that monetary policy will remain accommodative for the foreseeable
future as the excess capacity that has built up as a result of the earlier period of economic weakness is seen as limiting
inflationary pressures for some time.
This observation is consistent with the view that the performance of commodity
futures is aligned with
inflationary concerns, and indicates that commodity
futures can be effective in hedging the adverse influence that
inflationary pressures exert on certain equity styles.