Inflation is falling: Can rates go down on a sustained basis?

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In normal times, a Consumer Price Index (CPI), measured inflation coming below the central bank’s target, would have been a cause for celebrations that borrowing costs could slide on a sustained basis. Unfortunately, these are not normal times for monetary policy makers. CPI inflation for February at 3.6% against the target of 4% is music to ears. The repo rate at 6.25% appears too restrictive for a slowing economy, and there is little doubt



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Inflation is falling: Can rates go down on a sustained basis?



In normal times, a Consumer Price Index (CPI), measured inflation coming below the central bank’s target, would have been a cause for celebrations that borrowing costs could slide on a sustained basis. Unfortunately, these are not normal times for monetary policy makers. CPI inflation for February at 3.6% against the target of 4% is music to ears. The repo rate at 6.25% appears too restrictive for a slowing economy, and there is little doubt



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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