- We are now at the lower end of our range of neutral, so we’re providing some stimulus
- This isn’t just a cyclical downturn, part of it is structural
- The US has swerved to protectionism, it’s harder to do business in the US, it’s adding cost
- Added costs limit how much we can boost demand
- There is a wider-than-usual range of economic outcomes
- There is still uncertainty about impact of US tariffs
- If the outlook changes materially, we’re prepared to respond
The most-interesting comment was when he corrected himself. He said “if the outlook changes, then,” he then paused and said “if the outlook changes materially, then we’re prepared to respond.”
That’s a strong hint that they’re not planning to cut rates again. The market is still about 50/50 for a cut by June but this is looking like a shift to the sidelines.
This article was written by Adam Button at investinglive.com.
