- Cautious approach to easing monetary policy is appropriate
- Looking for incoming data to provide evidence that risk of persistent inflation is diminishing
- Wage growth has fallen but remains above what our suite of models can explain
- Risks to activity are to the upside, which could suggest long run neutral rate is higher
This just reaffirms their stance from last week. But as things stand, traders are expecting them to cut rates again in November following the pause this month. The odds priced in by the OIS market are now at ~86% for a 25 bps move then.
