It may sound trivial for central banks to note that they will closely monitor the emerging economic data, but that is the reality of the situation in a world where there are major uncertainties and every indicator of growth and inflation is carefully scrutinised.
The Bank’s output and inflation projections, and the associated interest rate track, are based on a series of assumptions and judgements that are continually tested in the light of new information and analysis. It is this emerging economic data that will determine whether the assumed 35 basis points of further easing is realistic or whether more or less monetary stimulus will be required.