Not yet the time to let our guard down

Last week’s rate cut brought us visibly closer to our destination, but it doesn’t mean our job is done. It’s not.

With inflation’s continuous cooling, the economy is adapting to new circumstances marked by an exceptional level of uncertainty.

In a nutshell, the time to let our guard down has not yet come.

Despite encouraging inflation trends, I am still looking for undeniable confirmation that disinflation will stay.

Unfortunately, inflation risks remain tilted to the upside.

Geopolitical and trade tensions add another layer of unpredictability, further complicating the matters.

History taught us that tariffs slow growth and boost inflation—precisely what we aim to avoid.

Over the coming weeks, we must carefully assess all the incoming data and complement what we learn with cautious judgment. All to retain the necessary level of flexibility.

This flexibility means staying open-minded and keeping all options open, whether we decide to cut again or pause. Whatever we do will depend entirely on incoming data.

Because of all the existing complexities, we must remain vigilant. The impacts of what’s happening on inflation are not fully understood yet.

Premature optimism carries a risk to set us back. We must stay alert and act responsibly —without unexpected detours.

Now is not the time for automatic decisions or rushing.

It would be most unfortunate to see hard-earned progress unravel.

We have come a long way, but the job is not finished.