BoE's Ramsden: Less concerned than other MPC members that disinflation will stall

Bank of England (BoE) Deputy Governor Dave Ramsden said on Tuesday that if evidence becomes stronger that inflation will undershoot the target, they can speed up rate cuts, per Reuters.

Key takeaways

"Material uncertainty about how the UK economy is responding to shocks."

"In the short term, for me focus is likely to remain on domestic side of the economy."

"UK has a challenging fiscal environment."

"Moves in gilt markets have been orderly."

"Moves in UK 30 year gilt yields since April have been driven by US."

"We remain very vigilant on markets."

"I'm less concerned than other Monetary Policy Committee members that disinflation will stall."

Market reaction

GBP/USD clings to strong daily gains following these comments and trades at its highest level since February 2022 above 1.3630.