We are monitoring actual inflation data, in particular for servicesMonthly figures will be volatile due to base effects on energyThis “noise” is not very meaningfulWe are still more outlook drivenRemains confident that inflation will be back to 2% target next yearWill reach inflation target along with a soft landing
The point they are trying to make is that even by cutting rates, it doesn’t mean that they are taking the wrong step in the battle against inflation. Central bankers are just like politicians these days. The first rule of the job is to cover your ass. Pfft.
This article was written by Justin Low at www.forexlive.com.
