But with consumer confidence stalling and the economy heading for a slowdown, many predicted the MPC would again vote to cut rates this month, despite the knock -
on inflationary concerns.
Not exact matches
Expressing
concern over the impact of loose credit
on inflationary pressures, the BIS is now calling for tighter monetary policy across the board.
Additionally, there has always been this chronic
concern that
inflationary pressures lurk just around the corner and will ultimately put pressure
on bond prices.
Morneau maintains that low - cost financing of public infrastructure through the BoC would be
inflationary, but apparently his own plan — an Infrastructure Bank that would reward investors with 7 — 9 % returns and whose costs would be passed
on to consumers through tolls, fees, or taxes — does not seem to cause him the same
concerns.
They seek special explanations, but at the same time, they express
concern that
inflationary pressures, while invisible
on the surface, are building up in the economy.
Given the Fed's focus
on maintaining price stability, it is reasonable to expect that Fed tightening corresponds with periods of heightened
inflationary concern.
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.
He also pointed out that a regulatory attack
on leading technology and internet companies is possible, which could have unintended consequences and heighten
inflationary concerns.