Technical Analysis

BOE’s Ramsden: I expect that further increases to the bank rate are going to be required

  • Remarks by BOE policymaker, Dave Ramsden
Justin Low

Justin Low

Thursday, 24/11/2022 | 09:59 GMT-0

24/11/2022 | 09:59 GMT-0

  • Favours a watchful, responsive approach to setting policy
  • Bias is towards further tightening but if economy develops differently, then would consider the case for reducing the bank rate
  • Impact of higher rates could take longer to come through
  • Not yet confident that domestically generated inflation pressures are starting to ease
  • There is a range of views on the MPC over development of inflation expectations

Not to be picky but this is one of the few times we are hearing about rate cuts from a central bank policymaker these days. But that is not to say that we are going to see a major policy pivot to that extent just yet. It will require a more recession-like economy alongside cooler inflation pressures to really get to that point.

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