In the case of the euro area, this tool has not been used in isolation, but rather as part of a comprehensive package of complementary measures taken to combat the disinflationary
forces that intensified in mid-2014.
The Pharos note added that the continuation of this disinflationary
trend could open the door to a gradual easing of interest rates, but the CBE should remain vigilant and be prepared to tighten the monetary stance if demand pressures reemerge.
The National Bank expects that stable oil and grain prices, a reduction in inflation expectations and weak disinflationary
pressure from domestic demand, will lead to inflation entering in the target corridor of 4-6 percent in early 2019.
In terms of domestic risks, the continuing disinflationary
trend has reduced the risk of entrenched inflation pressures.
The IMF said, 'The breadth of the decline in inflation across countries and the fact that it is stronger in the tradable goods sectors underscore the global nature of disinflationary
Interest rates will remain low through 2017 as the central bank (Riksbank) will maintain a negative policy rate and disinflationary
conditions will persist.
The shift is broad, brisk, and suggests the dollar's disinflationary
drag is fading," the analysts wrote.
Earlier in November the governor of the Bank of England, Mark Carney said in a letter to Chancellor of the Exchequer George Osborne that it was the job of the Bank to "return inflation to target sustainably; that is, without an overshoot once persistent disinflationary
forces ultimately wane".
consumer prices fell again in September, recording their biggest drop in eight months as gasoline costs fell, the government reported Thursday, but a steady increase in underlying price pressures should calm concerns that a disinflationary
trend was re-emerging.
We expect supply pressure to offset the disinflationary
trend and as BSP may have limited room to cut policy rates as the Fed's H2-2015 rate-hiking cycle approaches," SCB said.
Nevertheless, the measures reflect a long disinflationary
A stronger Sterling also drags on inflation expectations and by keeping Sterling relatively low, the disinflationary
risks will hopefully weaken.