BoE Deputy Governor Dave Ramsden said today that the UK’s labor market continues to loosen, with wage growth normalizing and supporting the disinflation process. He noted that while inflation pressures had been substantial, the Bank’s forecast for a temporary rise in CPI to 4% in September was likely to mark the peak.
Ramsden expressed confidence that inflation will return to the 2% target under current restrictive policy settings, aided by market expectations already factored into the Bank’s forecasts.
He added that the MPC’s “gradual and careful” strategy remains the right approach. Looking ahead, Ramsden said there remains “scope for further removal of policy restraint.”
