- 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.
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