- We will have to judge meeting by meeting how far and how fast
- The road ahead will have bumps
- There’s still a continued, gradual easing of underlying inflation pressures
- Coming rise in inflation is almost entirely due to factors not directly linked to pressures in the economy
- We expect these factors to be temporary
- We now expect GDP to be notably weaker in the near-term, before picking up in the middle of the year
- Consumers are more price-conscious and holding back on spending
- The disinflationary process has been slow too
- It is unclear what form of global trade policies will take
- The judgement we have to make in future meetings is whether underlying inflation pressures are easing enough to allow for further rate cuts
- We must also proceed carefully, judging the evidence afresh at each meeting
- The bank rate is not on a pre-set path
This article was written by Justin Low at www.forexlive.com.
