Overview

• Minutes from the Aug. 7 meeting say the board will assess additional rate reductions using the full set of inflation determinants.
• The policy rate is 7.75% after a 25 bp cut on Aug. 7, marking a ninth consecutive move following four prior reductions of 50 bp.
• Headline inflation eased to 3.51% in July on non-core declines, while core rose on merchandise prices, complicating the disinflation path.
• Subgovernor Jonathan Heath warned progress toward the 3% goal is fragile and argued conditions do not yet justify further relaxation.
• The board projects headline inflation will reach the target by Q3 2026, notes slack in activity, flags tariff and exchange-rate risks, and meets next on Sept. 25.