The RBA's decision to hike rates this week was underpinned by its view that upside risks to inflation outweigh downside risks to employment. We suspect that will remain the case for some time. Given...

Before ECB policymakers react to the rise in energy prices, they will wait for more clarity on the size and duration of the shock. There would be no need for a response if energy prices dropped back...

The ECB’s press release and updated forecasts suggest that policymakers think that the inflationary effects of higher energy prices will outweigh the disinflationary effects of weaker economic growth...

The large upside surprise to the PPI in February confirms that stronger inflationary pressures were already making their way through supply chains even prior to the surge in oil prices. Final demand...