- I supported 75 bps and could support another 75 bps in July
- Prudent strategy might be to continue with 50 bps hikes after July meeting
- I assume we will be able to 'relax' policy somewhat in 2024
- If supply shocks abate we may not need to raise rates as high as otherwise
- A steady approach to raising rates may help us avoid tightening more than necessary
The 75 bps hike this week was anything but 'steady'. I agree with him that if they'd established 50 as a consistent baseline it would be credible but now it looks like all their commentary is meaningless until the leak to the WSJ 24 hours before the meeting.
EUR /USD is at the lows of the day, down 80 pips to 1.0464.