Macklem
- We're encouraged by what we've seen in the economy
- Things are moving in the right direction, we need to see that progress continue
- If things evolve broadly as we expect it will be appropriate to cut rates
- We have seen progress across our inflation indicators
- Pricing behaviour from companies is starting to normalize
- The decline we've seen in inflation momentum "is very recent"
- We are seeing what we hoped and need to see, we just need to see it for longer
Macklem was asked about June and the two CPI prints before then and said that they'll cut when they are confident on inflation and that they're seeing what they hoped and just need to see it longer. To me, that's a conditional commitment to cut in June.
The next question is what the cadence of cuts will be once they start.
- Main driver of GDP forecast increase has been population growth
- We did discuss when to cut rates, there was a 'clear consensus' to hold
- There is some diversity of views in the governing council as to when we're going to see what we're looking for
- We will be particularly focused on core inflation, when we talk about sustained progress that's what we mean
- Housing will continue to contribute to inflation
