Ramsden Warns of Potential Interest Rate Hike Due to Persistent Inflation Pressures

Bank of England Deputy Governor Dave Ramsden said interest rates may need to rise if persistent inflation pressures continue. Speaking at a finance event in London, he noted that there had been 'robust discussions' among officials about the central bank's recent bond sale overhaul.

Ramsden mentioned that without the US Middle East conflict and its impact on energy markets, the Bank of England would have taken action to lower interest rates. However, he emphasized that holding interest rates at 3.75% has 'tightened conditions' in the economy.

The Deputy Governor acknowledged that inflation risks have shifted more towards the upside and warned about potential second-round effects from price pressures. He stated that while the current policy stance provides restrictiveness, there could be a case for increasing Bank Rate if upside pressures on inflation persist.