- Current uncertainty will be the new “normal”
- Central banks have to get used to managing it
- Expect there to be new staff projections in June
- But we don’t know the exact impact from tariffs on inflation and the economy
- June rate decision depends on incoming data
At least he’s trying to paint a bit more of an honest picture with these remarks. But at the end of the day, groupthink is a main issue with central banks. When the going gets tough, everyone defers to the majority view to not be “wrong” and to not jeopardise their reputation. Pfft. Anyway, markets are pricing in ~81% odds of a 25 bps rate cut in June currently.
This article was written by Justin Low at www.forexlive.com.
