The BCCh indicated the possibility of resuming cutting the policy rate as early as July 2025 (brought forward from September). The new base path still assumes a cut to a neutral rate of 4%, however the pause between the next two 25bp cuts and the final two 25bp cuts remains lengthy. The BCCh looks to be carving out space for flexibility to see how domestic data and external factors develop before committing to pulling forward convergence to neutral.
For more, including market takeaways, please see full note.