Ramsden Signals Possible Rate Hike If Inflation Rises Further

Bank of England Deputy Governor Dave Ramsden has hinted that further interest rate hikes may be necessary if inflation continues to rise. Speaking in London, he noted that monetary policy remains restrictive but could become less so if upside pressures on the inflation outlook intensify.

Ramsden's comments were made during a speech at the Money Macro and Finance Society, a financial association based in London. He was among those who voted to hold the policy rate steady at the Bank of England's recent Monetary Policy Committee meeting.

The Bank of England has maintained its current interest rates since the onset of the Iran War, a move that reflects the fact that monetary policy is already restrictive. Unlike some other central banks, such as the European Central Bank and the U.S. Federal Reserve, the Bank of England has refrained from raising rates during this time.