BoE’s Ramsden: My bias is towards further tightening
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.”
Additional quotes
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.
Market reaction
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.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
