NBH Minutes (Feb): Several members pointed out that inflation temporarily fell below the 3% target, in line with the December forecast
Importance
Level 1
- Certain policymakers drew attention to the extension of price margin restrictions. The NBH would assess its impact on the inflation trajectory in its March forecast.
- Stressed that in informing monetary policy decisions, it was crucial for the Council to assess incoming data from meeting to meeting and evaluate them in terms of their impact on the inflation outlook.
- Certain members pointed out that based on market and analysts’ expectations, interest rates in the region could decline further in the future.
- Some identified rising oil prices as an external cost factor requiring special attention.
- The fact that inflation developments were in line with the December forecast and the stability of financial markets provided adequate room for a cautious reduction of interest rates.
- A single option was discussed (a 25bp cut).
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