The market curve is what it isWe’ve used the term “gradual” for some time already nowBut will not go beyond what the term may mean as there is still a lot of uncertaintyIt is good news that inflation is well below where they thought it would be a year agoBut we are still in a world where there are very big geopolitical shocks going onNeed to watch out for external shocks, not just domestic risksIf disinflation progress continues, we will respond to itWe cannot put monetary policy on hold until ONS improves labour force data. It makes our job harder.
Again, he’s just steering clear of pre-committing to anything and he is at least being explicit about it. He says he won’t fall into the trap of saying “gradual” means cutting every other meeting, as they will have to monitor developments first and then decide their course for action.
This article was written by Justin Low at www.forexlive.com.
