- Wants some evididence that inflation is headed back to 2%
- Considers a 3% policy rate a ‘loose’ estimate of neutral
- There are potentially ‘several’ more rate cuts if progress on inflation resumes
- Goods with higher tariffed content have tended to see larger price increases
- Recent headline inflation was partly pulled down due to base effects
That’s on the hawkish side.
This article was written by Adam Button at investinglive.com.