- The risks remain two-sided but skewed to the downside on growth but upside on inflation
- Noisy data means that it will take longer for me to take comfort from disinflationary trends
- Given the recent period of elevated inflation, I think price stability is the key priority
- Worried about near-term profile for inflation this year
- It now resembles more of a “plateau” than a “hump” in my view
- The risk is that it feeds through into second round effects, skewing risks to the upside
This article was written by Justin Low at www.forexlive.com.