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Forrester cited the Reserve Bank of Australia's interest rate push, as well as the gathering pace of reserve managers' diversification out of the U.S. dollar.
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His comments underscore the balancing act the Bank will face over the coming months as the pound's fall and low interest rates push up inflation while uncertainty brought by the Brexit vote threatens to knock economic growth and employment.
Low interest rates push away from traditional savings; monies pooled in savings and safe assets actually lose money in inflation adjusted terms.
If the FHFA directed them to do so they could issue principal reductions, negotiate lower interest rates, push refinancing deals through the system, and dramatically reduce foreclosures.That would do far more than last week's settlement deal can ever hope to accomplish -- without Congressional approval, with a stroke of its executive's pen.
But another happens to be one the main causes of local discontent: high interest rates pushed up by persistent inflation of around 6% a year.
Expectations of higher interest rates pushed sterling to two-year highs last month, making it harder for British exporters to cash in on an upturn in the eurozone, their biggest market.
That means that as the economy recovers and pushes inflation higher, the Fed will move to increase interest rates, pushing down the value of its giant bond portfolio.
The Federal Reserve Board controls the interest-rate push button to modify the behavior of Pavlovian money merchants.
Lower the interest rate to push inflation up".
Raise the interest rate to push inflation down.
Reducing the interest rate could push up the inflation rate, even as it bolsters consumer spending.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com