This means that the continuing decline in the unemployment rate should begin to translate into
stronger inflation pressures.
Not exact matches
Indeed, the evidence I reviewed does not support the view — expounded by the new Bank of Japan management — that by buying more longer - dated securities (i.e., running printing presses a bit faster) will boost upward
pressures in labor and product markets to bring
stronger economic growth and an
inflation rate of 2 percent.
Strong export, import and
inflation data from the U.K. in recent months have also reduced the likelihood of further monetary policy easing from the Bank of England (BOE) and should consequently alleviate some
pressure on sterling, according to research sent to clients from Singaporean bank, DBS, on Wednesday.
-- the
strong dollar: it hurts our trade competitiveness and puts downward
pressure on
inflation and thus props up the real interest rate;
Could the economy have successfully negotiated the period of robust growth, and rising
inflation, in the first half of 2000, in the face of
strong downward
pressure on the exchange rate, with interest rates maintained at 4 3/4 per cent?
Domestically - sourced
inflation has been running faster over the past couple of years and there has been a significant pick - up in domestic producer prices recently, associated with rising materials costs and
strong demand
pressures in some sectors.
If there is an expectation of
inflation, there would be a rush to store up on assets like gold and silver, which are believed to be of
strong value and less submissive to inflationary
pressure.
If it does, it will, in due course, begin to exert downward
pressure on those elements of
inflation that had picked up in response to
strong demand.
The Committee's sizable and still - increasing holdings of longer - term securities should maintain downward
pressure on longer - term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative, which in turn should promote a
stronger economic recovery and help to ensure that
inflation, over time, is at the rate most consistent with the Committee's dual mandate.
Also, the need for interest rates to rise will be lessened to the extent that
inflation expectations remain well anchored and wage
pressures in
stronger parts of the economy do not spill over to other parts.
The Bank raised policy rates by a further 25 basis points in March to 6 3/4 per cent, citing a
stronger outlook for activity in the near term and associated
pressures on
inflation.
Also, if domestic economic activity and demand were to be even
stronger than expected, given the existing strength of the labour market, upward
pressure on labour costs could emerge, eventually pushing
inflation higher.
Inflation in the non-traded sector of the economy remains relatively high, at over 4 per cent, reflecting the overall strength of the domestic economy,
strong demand conditions in the housing sector and continuing cost
pressures in some service industries.
Given the likely strength of the economy, domestically sourced price
pressures are expected to remain relatively
strong, with
inflation projected to be on an upward trajectory through 2005.
In contrast,
inflation in the domestically oriented sectors of the economy has continued at a higher rate, with the non-traded component of the CPI increasing by around 4 per cent over the latest year, reflecting ongoing growth in costs and
strong domestic demand
pressures.
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.
A dollar that remains
strong, albeit with some reversals, would put downward
pressure on
inflation and the earnings of U.S. exporters.
Taken together, these actions should maintain downward
pressure on longer - term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative, which in turn should promote a
stronger economic recovery and help to ensure that
inflation, over time, is at the rate most consistent with the Committee's dual mandate.
The U.S. Treasury bond and note futures markets this week have been under
strong selling
pressure, amid notions of a hike in U.S. interest rates very soon, and amid rising
inflation.