Interest Rates to stay on hold?

October 2002
Management Services;Oct2002, Vol. 46 Issue 10, p4
Academic Journal
This article focuses on the analysis of economist Lai Wah Co on the inflation environment and the implications for interest rates. Underlying inflation fell from 1.8 percent in May 2002 to 1.5 percent in June 2002. Not only was this unexpected, it was the lowest on record since RPIX figures began in 1975 and reached the lower bound of the government's 2.5 percent inflation target. The main downward pressure on inflation in June 2002 were motoring costs, seasonal food prices, and clothing and footwear. As inflation varies greatly on a month by month basis dues to volatile components the record June figure should not be viewed in isolation.


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