- We should keep going to neutral in measured steps
- There is no urgency in discussing undershooting the target or going below neutral
- Inflation has not yet been defeated
- But recent data has been encouraging
- Once we get closer to neutral, it may be appropriate to align our language accordingly
- A soft landing with a recovery is still the baseline
- But recent data presents some risks that might delay the expected improvement to growth
At this stage, it pretty much means being consistent to cut when the data warrants so. And that is precisely what markets are also pricing out through to June next year. He doesn't want to sound overly dovish but if economic conditions continue to worsen, that will surely impact their outlook.
