• Since cut-off date for March projections, incoming data have been mixed
• But if baseline persists, it will be appropriate to raise rates further
• By bringing rates to a sufficiently restrictive level and fostering a period of below-trend growth through dampening demand, we will counteract above-target medium-term inflation pressures

That’s a very big roundabout way of justifying their motive for raising rates further in the next meeting. Whether or not that involves a 25 bps or a 50 bps rate hike is still up for question.

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