• Will only get key price pressure data in Q2, then only we can „contemplate a cut in interest rates“
• Price outlook is not yet clear enough
• Some setbacks on inflation may be possible

The Q4 2023 wages data was released earlier this week here. But as mentioned at the time, policymakers are likely to want to wait on the Q1 2024 data – which will only be out in May – before proceeding with rate cuts. And Nagel’s comments serve to reaffirm that sentiment.

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

• Confident that risks of de-anchoring of inflation expectations have come down
• There is hope to achieve soft landing and taming inflation without causing a recession

The question now is whether is it enough to get inflation back down towards the desired 2% target. For now, we can still expect rate cuts in the near future but the pace of the trajectory may still be in question.

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