In purdah period, comments not intended to reflect monetary policy decision at July meeting Upside inflation risks in particular from energy prices Essential recent rise in inflation does not give rise to broad-based inflationary pressure Risks to medium-term inflation outlook are on upside Liquidity ample, could feed inflation pressures Current monetary policy is accomodative Strong vigilance warranted on inflation Ready to act in firm and timely manner on inflation Pretty hawkish stuff. Nothing to disuade me from my belief that ECB will be hiking rates next week. EUR/USD up slightly at 1.4518. Kinda slow, ain’t ... (full story)