- Need to be cautious in coming months after the many rate hikes
- Demand seen further contained due to delayed impact of rate hikes
- Need to avoid excessive tightening of monetary, credit conditions
- Fears of a wage-price spiral have sharply diminished
It’s pretty much just acknowledging the trend and I’m sure for some countries, they’d be glad that the rate hikes have stopped. But in the overall fight against inflation, it’s still too early to declare victory just yet. The trend is encouraging but price pressures could still end up being stickier than anticipated next year.
This article was written by Justin Low at www.forexlive.com.
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