Bank of England Deputy Governor Dave Ramsden says the central bank could raise interest rates if inflation pressures keep building, repeating language from September's policy minutes. He spoke as part of the 6-3 majority that voted to hold rates this month, while market pricing points to a hike rather than a cut in November.
The speech came Monday, to London's Money Macro and Finance Society, sticking close to the message from the Bank's September minutes. According to Economic Indicators News, Ramsden said "there could be a case for increasing Bank Rate" if upside pressures on the inflation outlook continue to build.
MPC held rates 6-3 this month
Ramsden was part of the 6-3 majority on the Bank's Monetary Policy Committee that voted to keep interest rates on hold this month. Unlike the European Central Bank or the US Federal Reserve, the Bank of England has not raised rates since the start of the Iran war, partly because its policy stance was already restrictive.
QT continues alongside the rate outlook
The comments reinforce the Bank's commitment to its ongoing quantitative tightening strategy, according to Crypto Briefing. The Monetary Policy Committee has held the Bank Rate at 3.75%, with inflation currently at 2.6%, though projections point to a possible rise.
Sources: Economic Indicators News, Economy News, Crypto Briefing
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