- There is good news on inflation recently
- Sooner or later, that will be reflected in monetary policy
- Optimistic about inflation dynamics, even on core inflation
It’s all relative. That is the key takeaway from his remarks above. They are stressing data-dependency now but the timing of any policy pivot will be more of a subjective case. In any case, traders are still pricing in ~98% odds of a rate cut in April so it will be interesting to see how this all plays out in the next two months.
This article was written by Justin Low at www.forexlive.com. Source