- We discussed holding and outlook for policy, being cautious
- There are mixed signals on the tightness of financial conditions
- We still got a little bit of tightness that will take a little bit of heat out of the economy to bring inflation back down
- It’s possible that there’s no more rate cuts but also possible that there will be some more
- But as said before, we didn’t go up as high (on rates) so we don’t have to come down as far
- A rate hike was not discussed
- We have judged that things are restrictive but the closer we get to neutral, the less we know
- The board is definitely targeting 2.5% mark for inflation, “just below 3%” is not good enough
- It’s an open question about whether there are many more rate cuts to come
- We do not give forward guidance
- There is still much uncertainty on inflation
- We are watching things very carefully
- We think we are close to neutral and will be going meeting by meeting to see if whether outlook is still reasonable
- The board does not have a bias on monetary policy
Her remarks certainly don’t sound like they’re in a rush to be cutting again next. Barring any major surprises in the data, we shouldn’t
This article was written by Justin Low at investinglive.com.