- We don't see signs of second-round effects on wage setting
- The size of rate hike increment will depend on data but it's clear we need to preserve price stability
- Banking problems will have an impact on our decisions
- We have tools for 'whatever it takes' for banks
- We are ready to counter any threat to transmission
The market is pricing in a 72% chance of a 25 bps hike at the May 4 meeting. but only one further hike after that to cap rates at 3.50%.
