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Politics : Idea Of The Day
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To: flickerful who wrote (19982)9/5/1998 4:25:00 AM
From: IQBAL LATIF  Read Replies (3) of 50167
 
I would think a very balanced statement, the words ''international deflation and domestic inflation '' speak a lot, it is domestic inflation in back of his mind and therefore he thinks ''he was as inclined to cut interest rates as to raise them.''

It will interesting to see how bonds will react to it, this is going to put some pressure on the bond market, short term market rates already include a rate cut.. if inclination is equal and the domestic economy has inflationary wage pressures we will be looking at different kind of expectations from what market has built in, this is have been our point of view for long time..
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