• Further rate hikes will depend on economic activity, prices and financial conditions
• There is risk of underlying inflation deviating upwards to the level above the price target
• Important for underlying inflation to stabilise around 2% level
• Uncertainties remain with regards to situation in the Middle East
• Need to pay close attention to how said developments will affect economy, prices
• Pace of any future tightening will also depend on Middle East developments
• Need to examine likelihood of realising baseline scenario in considering timing, pace of future rate hikes
• Wage-price mechanism has taken root, aligned with 2% price target in recent years

More to come..

This article was written by Justin Low at investinglive.com.



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