- Inflation is decreasing in a sustained manner
- Almost all factors that drove prices up have dissipated
- Should start cutting rates sooner rather than later, but avoid abrupt moves
- No need to wait for wages data in May to make rate decisions
- There are no visible second-round effects of wage hikes
This will just serve to feed market hopes of a rate cut in April, which is ~98% priced in currently. The euro is struggling a little on the session, with EUR/CHF in particular down 0.4% to a two-week low of 0.9325 now.
