This month’s Off The Record survey focused on inflation. The vast majority of respondents (66%) believed that low inflation of less than 3% was likely in the next 12-18 months. A Dutch fund commented: “Currently, [we] do not see inflationary pressures to justify high inflation expectations. Furthermore, the European Central Bank’s monetary policy will be tilted to be more restrictive if and when an inflationary environment is anticipated.” A Danish fund added: “Economies are recovering slowly and at present only working at 70-75% of total production capacity”.
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