A nascent rise
in inflationary expectations.
By good financial management and fiscal prudence, and by removing uncertainties about our commitment to build a better economy, our goal is to signal downward trends
in inflationary expectations, and encourage downward trends in the monetary policy rate setting and interest rates pricings by commercial banks.»
Not exact matches
«The rise
in long - term
inflationary expectations... suggests that part of the recent rise
in headline inflation may now be expected to persist longer than previously thought,» the Paris - based group observed
in the Global Economic Outlook released today.
«The rise
in long - term
inflationary expectations... suggests that part of the recent rise
in headline inflation may now be expected to persist longer than previously thought,» the Paris - based group
That is, would
expectations of outsized demand growth — of, say, 4 percent per year over the next four years
in inflation - adjusted terms — generate undue
inflationary pressures that would require the Federal Reserve to respond by raising interest rates, essentially killing off any actual growth that those
expectations could generate?
Overall, inflation
expectations are marginally higher than
in the winter survey: higher commodity prices and expected
inflationary pressures
in the United States are viewed as contributing to domestic inflation over the next two years.
That said, there's just no story right now, at least
in the actual data (as opposed to
expectations), of an overly tight job market leading to
inflationary wage gains.
Only by the Fed muting both inflation and
inflationary expectations can households, businesses and governments make the decisions and take the steps that create jobs, profits and the steady rise
in output from which everyone
in our society benefits.
Valentines Day news that pushed up
inflationary expectations may have provided the single most important reason
in many weeks.
If our friends at Deutsche Bank are right
in forecasting the US unemployment rate to decline from the current 17 year low of 4.1 per cent to 3.2 per cent by - late 2019, the US Federal Reserve are going to have a delicate balancing act as they lift the cash rate
in trying to keep
inflationary expectations under control.
Firstly, lower real rates could imply higher
inflationary expectations in the future therefore gold is bought as a hedge against this possible inflation.
Price
expectations, which are now seen as occupying a central role
in the
inflationary process, have been cracked; given this, together with continued policy vigilance, there is no reason why the current underlying inflation rate of 2 to 3 per cent can not be sustained.
The market earlier this year simply had made an enormous error by pricing
in its
expectations for a strong economic and
inflationary environment that has frankly not appeared (Making Volatility our Friend: Trading the Kitchin Cycle, May 28, 2014 and Unsustainable Steel Premiums, Sept. 3, 2014).
The stability
in oil, with the
expectation of prices going higher, has investors changing their view from deflation to an increasing
inflationary expectation.