Ramsden Signals Shift on Rates Amid Inflation Concerns

Bank of England Deputy Governor Dave Ramsden indicated a shift in his thinking on interest rates due to persistently high inflation. Speaking after delivering a speech, Ramsden stated that he is considering the impact of inflation on his decision-making process.

In response to a question about whether high energy prices and inflation alone would be sufficient for him to vote for a rate rise at a future meeting, Ramsden said 'We seem to be in a period of higher and longer-lasting headline inflation... So, that does begin to have a bearing on my thinking.'

Ramsden noted that by the time of the next Bank of England rate-setting meeting in November, there should be some initial evidence of the direction of negotiations over 2027 wage deals.