OREANDA-NEWS. The period between May and mid-June 2016 saw inflation flatten out as the economy was even more close to the point of recovery growth. These are the findings published in the seventh release of the Talking Trends, the BoR Research and Forecasting Department’s bulletin.

Inflation stays on the path to its target level, thanks to, inter alia, the current monetary policy. However, the risks of inflation exceeding the 4% target in 2017 remain, as inflation expectations are declining slowly and the uncertainty surrounding the budget and the performance of wages remains in place.

Economic activity in May was helped by growing oil and the continued adjustment of the economy to new conditions. The analysts expect the economy to reach a slow growth path in the next few months, barring any new external shocks.

Brexit has led to higher risks to economic growth in the UK, the EU and across the globe. These risks may well become the reason for BoA, ECB and BoJ to further soften their monetary policies. According to the experts, the probability of a next quarter interest rate hike from the Federal Reserve has grown weaker.