Economic activity significantly increased over May and June, according to recent data. Moreover, aggregate demand continues to expand at a pace exceeding the economy’s capacity. The growth rates of consumer prices were up as well.
In these conditions, interest rates in the economy soared, reflecting higher inflation risks. To bring inflation down to the target and return the economy to a balanced growth path, monetary conditions should remain tight for an extended period.
More details are available in the new issue of the macroeconomic bulletin Talking Trends.