In line with the BCCh decision Tuesday, the IPoM indicates concerns about sticky core inflation and points to a delay in the normalisation of policy rates. The expected policy path indicates a next 25bp cut at the December meeting (delayed from September), with full return to the 4% neutral rate delayed until 2027. Forecasts for activity and inflation, particularly core, were revised higher.
For more, including market takeaways, please see full note.