The inflation is higher than the target rate of 2-3%,but it is not too high. To calm the Wall Street, it has promised to keep the rate near zero until the end of 2013 without QE3.
Well given the state of the US economy and Europe, and their statements about keeping the cash rate near 0 over the next year or two, their current views appear to be that inflation is likely to be pretty low for some time to come.
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The inflation is higher than the target rate of 2-3%,but it is not too high. To calm the Wall Street, it has promised to keep the rate near zero until the end of 2013 without QE3.
Well given the state of the US economy and Europe, and their statements about keeping the cash rate near 0 over the next year or two, their current views appear to be that inflation is likely to be pretty low for some time to come.