<ul><li>A 25 bps or 50 bps rate hike in May is possible</li><li>If core inflation remains persistent, 3.50% terminal rate is the minimum</li><li>Thursday decision is a hawkish one so market reaction has been surprising</li></ul><p style=““ class=“text-align-justify“>Well, they are really coming out to make it clear to markets that March isn’t going to be the last rate hike in this tightening cycle. I think the issue for me is why couldn’t we just hear something like this from Lagarde yesterday? Geez.</p>

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