BoE Governor Dave Ramsden said in a speech that regarding the immediate outlook for the economy and policy, “some near term sources of uncertainty have eased but others remain.”
“Because of the Government’s Energy Price Guarantee there is more certainty about the outlook for energy prices and Government policy more broadly is on a more stable and predictable footing…. The labour market remains tight and services inflation has hit 30-year highs and is contributing more to overall inflation”.
“I am not yet confident that domestically generated inflationary pressures from increased costs and firms’ pricing pressures are starting to ease. Encouragingly survey and market based medium term inflation expectations have fallen back from their peak, though they remain elevated.”
“Assuming that in the near term the economy evolves broadly in line with the latest MPR projections and given my assessment of the balance of risks, then I expect that further increases in Bank rate are going to be required to ensure a sustainable return of inflation to target.”