BOE’s Ramsden: More likely than not that we will have to raise bank rate further

Bank of England (BOE) Deputy Governor Dave Ramsden said in Reuters interview on Tuesday, “more likely than not that we will have to raise bank rate further.”

Additional quotes

I'm going to look at the indicators, look at the evidence as we approach each upcoming meeting.

Not ruling out need to start lowering bank rate quite quickly at some point.

Inflation expectations remain anchored.

We had to act forcefully last week to ensure inflation doesn't become embedded.

We're in extraordinary period where a lot is changing. So, I wouldn't want to make any predictions about where Bank Rate is going to end up.

I'm certainly not ruling out a situation where when we look at the risk to the economy, having been raising Bank Rate, at some point we then have to start lowering it quite quickly.

I can imagine situations, yes, where we'll carry on… with a pace of QT in the background.

Market reaction

At the time of writing, GBP/USD is trading at 1.2085, up 0.12% on the day, little affected by the above comments. 

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