BoE's Ramsden: Autumn Statement not enough to stop rate hikes

Ramsden made it clear that another large hike was his preferred option

Elliot Gulliver-Needham
clock • 2 min read

Measures announced in the Autumn Statement this month will not prevent the Bank of England (BoE) from hiking rates further, according to deputy governor Dave Ramsden.

Speaking yesterday (24 November), Ramsden warned the central bank still needed to tighten monetary policy "to ensure a sustainable return of inflation to target". He pushed back against chancellor Jeremy Hunt's claims earlier this month, who said in the Autumn Statement that the £55bn in budget deficit reduction announced would give room for interest rates to be "significantly lower". Ramsden explained the vast majority of measures in the statement "do not come into effect until April 2025 so will have very little effect" on the three-year forecast horizon used by the bank. While t...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Inflation drops to 8.7% in April but remains above expectations

Inflation drops to 8.7% in April but remains above expectations

Latest Office for National Statistics data released

Professional Adviser
clock 24 May 2023 • 2 min read
Between 2009 and 2022, the Bank helped the Treasury earn more than £100bn in profit thanks to historically low interest rates.

BoE projects £100bn payment from Treasury to cover QE losses

Govt needs to pay almost £30bn a year in 2023, 2024 and 2025

Valeria Martinez
clock 03 May 2023 • 2 min read
Food and non-alcoholic drink prices were the key driver of inflation, rising by 19.2% in the year to March.

UK inflation dips to 10.1% in March but remains stubbornly high

Consensus expectations of 9.8% were not met

Valeria Martinez
clock 19 April 2023 • 2 min read