- The political outlook hasn’t changed much since March
- There has been little news in recent months on the persistence of inflation
- We are now seeing signs of a downward shift in the persistent component of inflation dynamics.
- A reduction in the discount rate would not entirely cancel the restrictive policy
- It will be necessary to maintain a certain degree of rigor in the policy direction to eliminate the persistence of inflation.
- The absence of news and the passage of time have brought the decline in discount rates a little closer.
This article was written by Justin Low at www.forexlive.com.
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