“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,”
“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.”
“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.”
“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 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.”
“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.”
