Oliver’s Insights – The threat of global deflation
Key points are as follows…
- Falling inflation on the back of falling commodity prices and global spare capacity indicates deflation is more of a threat globally than a surge in inflation.
- Further monetary easing in Europe, Japan and elsewhere should help head the threat off but it’s worth keeping an eye on.
- Low interest rates will remain, with further easing likely outside the US and another RBA rate cut.