David Brown Inflation Quotations

There is a multiplicity of reasons why the ECB has eased again and by so much. Critically the euro zone fundamentals have been crying out for lower rates for quite some time, with growth momentum slowing in the EMU area, Germany close to a double dip recession and inflation set to slow dramatically next year.

There is a multiplicity of reasons why the ECB has eased again and by so much, ... Critically the euro zone fundamentals have been crying out for lower rates for quite some time, with growth momentum slowing in the EMU area, Germany close to a double dip recession and inflation set to slow dramatically next year.

We think that relative softness in the euro zone recovery next year combined with inflation falling below two percent, will leave the ECB stuck on 2.5 percent rates for a considerable period.

These are the sort of numbers that should give extra leverage to the ECB (European Central Bank) to keep pressing rates higher, but we still believe the benign inflation picture will force them to adopt a softly, softly approach to tightening this year.

(PPI)... should show more benign signs this month reflecting softer energy costs. However, it will not mean the Fed takes its eye off the ball in its campaign against inflation risks.

It looks like Mervyn King is getting it wrong on UK growth, inflation and interest rate policy,

The manufacturing sector looks as if it is over the worst of its recent slowdown, U.K. GDP growth is still lively and the recent plunge in the pound could tilt the scales back towards increased inflation risk in future,