BoE Deputy Governor Dave Ramsden defended his vote for a rate cut last week, pointing to signs of labor market weakness and a deteriorating outlook. Citing PAYE data, Ramsden noted that private sector payrolls are now “clearly in contractionary territory,” signaling rising slack in the economy.
Ramsden acknowledged the decision to vote for a cut was “finely balanced,” but emphasized that even at 4%, policy remains “clearly in restrictive territory.” With demand cooling and employment indicators weakening, he argued it was important for BoE to continue adjusting.
