BOE's Ramsden: I can envision considering tightening sooner that I previously expected
Comments from the MPC member
- I put more weight on my inflationary scenario than deflationary scenario
- After wave of labor supply, likely to still be short of full employment
- Inflation is currently well above 2%
- It's too early to rule out deflationary scenario
- 'Transitory' does not mean 'here today gone tomorrow'
- As conditions for tightening are met, there's also the question of how we might tighten
- Inflation is already overshooting the target and it is less clear that there remains a degree of spare capacity
- CPI could rise as high as 4% for a period later this year before falling back to 2%
- There are certainly upside risks to household spending
These are certainly some hawkish comments but that fits in with Ramsden's usual stance.