• Core inflation is more resistant than expected
• We still have ground to cover
• We will raise interest rates again in July
• Not possible to say what we will do afterwards

They have pretty much pre-committed to a rate hike already next month, so there’s no backing down from that. But the PMI data today will certainly increase the debate about a September rate hike, especially if the trend continues into the summer.

This article was written by Justin Low at www.forexlive.com.