• 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

More to come..

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

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