Bank of England (BoE) Deputy Governor Dave Ramsden said in a scheduled appearance on Thursday, “my bias is towards further tightening, but depends on the economy.”
I am acutely conscious that our actions are adding to the difficulties caused to households by the current situation.
MPC must take the necessary steps in terms of monetary policy to return inflation to achieve the 2%.
I favor a watchful and responsive approach to setting policy.
Although my bias is towards further tightening, if the economy develops differently to then I would consider the case for reducing bank rate.
Encouraging that survey and market-based inflation expectation measures have eased.
UK fiscal tightening to have little impact on the forecast.
I am less confident unemployment will rise close to 5% in 2023.
The government autumn statement will push down on activity and inflation.
I expect that further increases in the bank rate are going to be required.
Possible that inflation comes down more quickly in 2023.
Impact of higher interest rates could take longer to come through, and have a bigger impact.
The Pound Sterling is little moved by the BOE policymaker’s remarks, keeping its range at around 1.2075, still up 0.18% on a daily basis.
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