The figures reflect good growth and bode well for 2006 for two reasons: international prices (for commodities) are very solid, as well as domestic demand, especially investment which means there will be a bigger rise in productive capacity and sales.
The central bank took a pause and it has room for three or four more hikes the rest of the year.
Investment has been very strong and consumption remains very strong.
The maintaining of the rate reflects that there is not a dangerous core inflation pressure, while the advance in total inflation is due to international price increases in fuel and not due to strong (domestic) demand.
I think they'll keep raising the rate this month and maybe every month until the end of the year.
Women represent change in a region where politicians are viewed with suspicion.
The coalition no longer needs to negotiate with the opposition, which can be a source of danger. Differences are sure to emerge within this coalition.
What's pushing these figures is domestic demand, with a major contribution from investment, which means productive capacity should continue growing in the coming quarters.
But there's a yellow light for inflation, since they show unused capacity has come down. That, combined with high prices for fuels will force the central bank to act with a lot of caution.
Copyright © 2024 Electric Goat Media. All Rights Reserved.