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BoE Ramsden warns upside inflation risks could require rate hikes

He said the BoE is unlikely to consider further quantitative easing anytime soon, while citing risks from energy prices, weather, AI supply chains, and food pressures.

Reported · Written up by our desk · Central Banks

Bank of England Deputy Governor Dave Ramsden said the risks to the inflation outlook have shifted increasingly to the upside, according to Reuters, and that external pressures from energy prices, weather and AI-related supply chains, along with domestic risks from food prices, are driving the concern.

Ramsden said he is focused on the potential for second-round effects and, if upside inflation pressures continue to build, there could be a case for raising the bank rate.

He added that he does not expect the central bank to consider further quantitative easing anytime soon, suggesting policy would stay tighter if inflation risks persist.

FXStreet noted Ramsden scored 8.4 out of 10 on FXS Speechtracker, above the historic 7.1 out of 10 baseline, indicating a stronger-than-usual policy impact focus.

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