- More dovish tone compared to the statement, and less information than expected. Quarterly Inflation Report should be predominant for the next steps of the cycle.
- Output/product gap: Many mentions, saying that it is positive, but without further indications. We do not know the magnitude or the horizon in which it will remain in this field (we should know in Thursday’s QIR). We still cannot answer some important questions, such as what level of the gap is sought. He mentions the “lowest possible cost in terms of activity”, which may indicate that they are not seeking a negative gap.
- Reaction Function: In addition to the gap, it indicates that more activity items will influence their prospective decisions, which are data-dependent. It does not close the door to a 50bps cut.
- Current inflation: In all oral communications, the signaling was that inflation was in line with expectations, but now they talk about a more unfavorable composition.
