March 05, 2025 at 02:32PM
It’s more likely mon pol will need to remain restrictive
It’s appropriate to maintain a cautious and gradual approach to removing monetary stimulus
There is a risk that the threshold for second round effects had declined
This is likely to be the fifth consecutive year of above-target inflation
I have advocated for a gradual path for removing mon pol restrictiveness and external communications that are clear and reflect caution
I don’t see much of a signal here but the US dollar is getting beaten up today with cable at the highs, up 66 pips to 1.2857.
More:
Deflationary trend is probably on track
Every meeting of the MPC will be live
I strongly argued for the use of words ‘gradual’ and ‘careful’
Hard to get clear signals on the direction of travel for wages
We probably have a bit more of an output gap than in February MPR
That final comment is a dovish one.
This article was written by Adam Button at www.forexlive.com.