High oil prices may raise inflation but longer-term it's negative for growth and that's how the Fed sees it.

For the yen it's much to do with oil prices. High oil prices are an unambiguous negative for all Asian currencies but the yen's sensitivity is historically high,

It's as good as it gets. You've got low inflation, minimal wage pressure, great productivity, booming growth and strong demand.

What Katrina has done is shift the economic focus from inflation to growth.

Strip out higher oil prices, and Europe doesn't have an inflation problem. We're still bullish for the medium term.

A year ago some said that the doubling of oil prices would push our inflation far beyond target and that a recession was required to slow the increase in house prices.