This was a week of data and MPC comments. All economic releases (without exception) came on the softer side. Most of the comments (even from hawkish wing of MPC) came on the dovish side, indicating willingness to ease rates maybe not in May but definitely before July. Here is our impression. MPC has a history of delaying decisions, which in the end forced them to make quite a costly policy mistake. We think that this time they will prefer to act rather than to make a mistake of exactly the same kind. While it is quite irrelevant if cut comes in May or in June, we think it is a cycle ahead of us.
