The Bank of England (BoE) needs to continue with its plans to reduce inflation, which include increasing interest rates, Dave Ramsden (pictured) the Bank’s Deputy Governor has said.
In a speech earlier today Dave Ramsden said: “The MPC must stay the course and set monetary policy to return inflation to achieve the 2% target sustainably in the medium term, consistent with the remit given to us.”
Ramsden said the central bank was “acutely conscious that for many our monetary policy actions are adding to the difficulties caused by the current situation”.
Adding that “millions of households and businesses experiencing real hardship”.
Ramsden was one of three policymakers who wanted a 0.75% rise at the latest MPC meeting rather than the 0.5% that transpired.
He said a bigger increase would, despite causing short-term pains, have helped get inflation under control.
He added: “At the time [the last MPC meeting] the three of us highlighted that the recent data outturns had already registered more persistent inflationary pressures and that medium-term measures of inflation expectations remained high.
“We welcomed the reduction of the near-term peak in inflation which will result from the Energy Price Guarantee but noted that the additional support it is providing to households will add to demand pressure.”
The next scheduled interest rate decision is due November 3rd.
