Rate cutting is likely to be slower than hiking was.Inflation has slowed markedly in recent months.Risks to the disinflation process remain.Persistent wage gains coould slow disinflation.Services costs and political tensions are other risks.Decisions are to be made meeting by meeting.
Vasle is a hawk, so these comments are not surprising. The governing council is anyway pretty compact on the view that they will wait for the data until September before taking a decision.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
