Norbolsa | The monetary authority kept interest rates unchanged as expected after a meeting where the focus was on economic projections and the outlook for rates.
Thus, the easing of recession risks, together with the maintenance of expectations of two rate cuts during the year, reassured the market, although it recognised that with the high uncertainty in the scenario, the best estimate given by the members is that they will remain. As for price expectations, they revised projections upwards for both headline and core inflation after realising that short-term inflation expectations from both the market and surveys have increased due to the uncertainty generated mainly by tariffs. Powell ruled that monetary policy is well positioned to assess how the economy is evolving as unknowns in the scenario are resolved.
