BoE Deputy Governor Governor Dave Ramsden told Bloomberg that stronger than expected job market could push inflation further higher from current 7% to 10% before year end. “Given what we know about the UK labor market, I wouldn’t be surprised if it turned out to be a bit tighter,” he said. “I think there are upside risks on inflation the medium term.”
“Certainly on the basis of my current assessment of prospects, we’re not there yet in terms of how far monetary policy has to tighten,” he said. “I’m still very, very supportive of the forward guidance that there may well need to be further tightening in the coming months.”
June “will be a chance to take stock — in this extraordinary period we really are learning things everyday,” he said. “I don’t think we’ve gone far enough yet on bank rate, but I do think that what we’ve already done is having an impact.”
