Central Bank Signals Extended Pause on Rates

The central bank held its benchmark rate steady for a third consecutive meeting and, in a shift of tone, dropped the language signalling further increases from its statement.

Officials said they want at least two more quarters of data before judging whether inflation has settled durably. The concern is timing rather than direction: rate changes take roughly a year to work through lending and investment, so the full effect of last year's increases is only now appearing.

Markets read the statement as dovish and repriced expectations toward a first cut later in the year. Several analysts cautioned that the bank has explicitly refused to rule out another increase if services inflation proves sticky.