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Inflation to stay low even as the recovery picks up

Inflation in most advanced economies is likely to remain at or below target for at least the next two years. GDP has accelerated in many countries, and has stabilised in the euro-zone, but it will be several years before unemployment falls to levels consistent with a rise in wage inflation. And although most central banks, including the US Fed, will persist with very loose monetary policy, this is not likely to lead to much faster credit growth or rising price pressures.

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