Dave Ramsden just became the third Bank of England policymaker in a week to flag hawkish inflation risk, right as UK business surveys roll over, including a retail sales survey at its weakest since 1983. November's hike is looking more live.
Bank of England Deputy Governor Dave Ramsden said Monday he would be prepared to raise Bank Rate if upside inflation risks keep building, joining fellow deputy governors who warned last week that elevated energy prices could force tighter policy. Source
Dave Ramsden does not vote for rate hikes. That is precisely why his comments on Monday matter. The Bank of England (BoE) deputy governor told the Money Macro and Finance Society in London that he would be prepared to raise Bank Rate if upside inflation risks keep building. Ramsden voted with the majority to hold Bank Rate at 3.75% at both the September and August Monetary Policy Committee (MPC) meetings, a 6-3 split each time, with Huw Pill, Megan Greene and Catherine Mann dissenting for an immediate move to 4.00%. He is now the third policymaker in a week to flag the same concern: fellow deputies Sarah Breeden and Clare Lombardelli warned last week that prolonged elevated energy prices raise the odds policy will need to tighten further.
