BoE’s Ramsden Still Optimistic on Rate Cuts

Bank of England Deputy Governor Dave Ramsden expressed confidence in the UK’s inflation trajectory, suggesting that a recent uptick in October’s CPI data is a temporary blip. He believes that inflation will continue to decline, allowing the central bank to maintain its easing monetary policy.

Key points from Ramsden’s remarks:

Inflation Outlook: Ramsden expects inflation to remain near the 2% target in the short term and fall below it later on.

Rate Cut Pace: He is open to accelerating rate cuts if there is clearer evidence of disinflationary pressures.
Wage Growth: Ramsden anticipates wage growth to be moderate, likely falling within the lower end of the 2-4% range.

Fiscal Policy Impact: He expressed uncertainty about the impact of recent tax increases on inflation, wages, and unemployment.

October CPI Data: Ramsden downplayed the significance of the slight overshoot in October’s CPI data, emphasizing the overall downward trend.

Ramsden’s comments reinforce the view that the BoE is likely to continue its easing cycle, with a focus on bringing inflation back to target.