- The pace and extent of reduction will depend on data
- Developments remain consistent with a consumption-led recovery
- Whether the recovery will firm up remains to be confirmed
- We should not be more restrictive than what is necessary to ensure timely convergence of inflation to target
- It could be self-defeating to tolerate an economy running persistently below potential as an insurance against possible future inflationary shocks
This article was written by Adam Button at www.forexlive.com.
