Bank of England Deputy Governor Dave Ramsden has signaled that he is less concerned about UK inflation than in previous months. Ramsden stated that the risk of inflation is now tilted to the downside and that evidence of persistent price pressures has receded in recent weeks. He also mentioned that the UK economy is looking more like that of the euro area and less of an international outlier [6d9382cb].
Despite his previous warning about the challenges of reducing inflation, Ramsden's recent comments suggest a shift in his stance. He now believes that the risk of inflation is tilted to the downside, indicating that he sees less pressure for prices to continue rising. This change in perspective may be attributed to the receding evidence of persistent price pressures in recent weeks. Ramsden also notes that the UK economy is resembling that of the euro area more closely, suggesting that it is becoming less of an international outlier [6d9382cb].
It is important to note that Ramsden's comments come after Chancellor of the Exchequer Jeremy Hunt announced tax cuts to boost the popularity of the Conservative Party ahead of a general election. The impact of these measures on the economy is yet to be assessed by the Bank of England, with a review scheduled for December [a3d4e370].
In summary, Bank of England Deputy Governor Dave Ramsden has signaled reduced concern about UK inflation, stating that the risk is now tilted to the downside and that evidence of persistent price pressures has receded in recent weeks. He also notes that the UK economy is resembling that of the euro area more closely. These comments come in the context of Chancellor of the Exchequer Jeremy Hunt's announcement of tax cuts, the impact of which will be assessed by the Bank of England in December [6d9382cb][a3d4e370].