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. |
I think the central bank looks at the long range, and annual inflation has moved from the bottom of the bank's ideal range, to the middle and toward the top, |
I think they'll keep raising the rate this month and maybe every month until the end of the year. |
Investment has been very strong and consumption remains very strong. |
The central bank took a pause and it has room for three or four more hikes the rest of the year. |
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. |
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 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. |
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. |
Women represent change in a region where politicians are viewed with suspicion. |