- No risk of sustained inflation undershoot
- Concern about impact of euro strength on prices is exaggerated
- Economy is resilient, growth outlook risks are balanced
- Policy is in a good place
This just reaffirms that the central bank is looking to pause on rate cuts through the summer. Traders are pricing in ~97% odds of no rate cut for July with only a ~38% probability of a rate cut for September currently.
This article was written by Justin Low at www.forexlive.com.