- Persistent inflation is the key element that we are watching
- If we have a persistent component of inflation, need persistent monetary policy response
- Not all wage indicators are pointing the same way right now
They’re not ruling out more rate hikes to follow but that to me just reads as posturing more than anything else. They’re now in pause mode and there is little reason to think that they would move away from that unless the inflation trajectory changes significantly.
This article was written by Justin Low at www.forexlive.com. Source