{"id":1596662,"date":"2022-08-09T11:24:00","date_gmt":"2022-08-09T15:24:00","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1596662"},"modified":"2022-08-09T11:24:10","modified_gmt":"2022-08-09T15:24:10","slug":"exclusive-bank-of-england-will-probably-need-to-raise-rates-again-ramsden-says","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/exclusive-bank-of-england-will-probably-need-to-raise-rates-again-ramsden-says\/","title":{"rendered":"Exclusive-Bank of England will probably need to raise rates again, Ramsden says"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fexclusive-bank-of-england-will-probably-need-to-raise-rates-again-ramsden-says%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1596662&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By William Schomberg and Andy Bruce<\/p>\n<p>LONDON (Reuters) \u2013     The Bank of England will probably have to raise interest rates further from their current 14 year-high to tackle inflation pressures that are gaining a foothold in Britain\u2019s economy, BoE Deputy Governor Dave Ramsden said.<\/p>\n<p>Inflation\u2019s spread was now showing up in rising British pay and companies\u2019 pricing plans, having originally been triggered by the reopening of the world economy from COVID-19 lockdowns and then by Russia\u2019s invasion of Ukraine, Ramsden told Reuters.<\/p>\n<p>Inflation is expected to return to the BoE\u2019s 2% target \u2013 down from above 9% now and a projected peak of 13% in October \u2013 as the economy goes into a recession and borrowing costs rise.<\/p>\n<p>But there was also a risk of an inflation mentality developing, Ramsden said.<\/p>\n<p>\u201cFor me personally, I do think it\u2019s more likely than not that we will have to raise Bank Rate further. But I haven\u2019t reached a firm decision on that,\u201d Ramsden said in an interview.<\/p>\n<p>\u201cI\u2019m going to look at the indicators, look at the evidence as we approach each upcoming meeting.\u201d<\/p>\n<p>The BoE last week raised borrowing costs by the most since 1995 as it took Bank Rate to 1.75% from 1.25%, its sixth increase since December, compounding the biggest two-year disposable income hit for households since at least the 1960s. <\/p>\n<p>\u201cWe know that what we\u2019re doing is adding to an already very challenging environment,\u201d Ramsden said. \u201cBut our assessment is we needed to act forcefully to ensure that inflation doesn\u2019t become embedded.\u201d <\/p>\n<p>Ramsden, a former senior official at Britain\u2019s finance ministry who joined the BoE in 2017, said a fall in inflation expectations in financial markets was encouraging, as were signs that households and companies thought central bankers would get to grips with the problem.<\/p>\n<p>Asked if Bank Rate was close to hitting a peak, Ramsden said that over the past year the BoE had to deal with the end of COVID-19 restrictions that hammered Britain\u2019s economy and the Russia-Ukraine war that pushed inflation to its 40 year-high.<\/p>\n<p>\u201cWe\u2019re in extraordinary period where a lot is changing. So I wouldn\u2019t want to make any predictions about where Bank Rate is going to end up,\u201d Ramsden said. <\/p>\n<p>\u201cI guess one thing I would say is I think inflation expectations remain anchored and that\u2019s really important.\u201d<\/p>\n<p>BOND SALES<\/p>\n<p>As well as raising interest rates, the BoE plans to move Britain\u2019s economy off its massive stimulus programmes by starting to sell government bonds \u2013 a process known as quantitative tightening (QT) \u2013 as soon as next month.<\/p>\n<p>Asked whether the BoE would continue to sell bonds if it needed to go in the opposite direction and cut interest rates to support the economy \u2013 something investors expect to happen next year \u2013 Ramsden said that was a possible scenario.<\/p>\n<p>\u201cI\u2019m certainly not ruling out a situation where when we look at the risk to the economy, having been raising Bank Rate, at some point we then have to start lowering it quite quickly,\u201d he said. \u201cI can imagine situations, yes, where we\u2019ll carry on\u2026 with a pace of QT in the background.\u201d<\/p>\n<p>The tightening effect of selling down the BoE\u2019s bond stockpile was likely \u201cat the margin,\u201d said Ramsden who as the BoE\u2019s deputy governor for markets is in charge of its balance sheet. <\/p>\n<p>Ramsden also pushed back at criticism of the BoE\u2019s inflation-fighting record by Liz Truss, the front-runner to become Britain\u2019s next prime minister, and her supporters some of whom have suggested the BoE should have less independence.<\/p>\n<p>Ramsden said British inflation had averaged 2% \u2013 the BoE\u2019s target \u2013 over the 25 years after the central bank was granted operational independence in 1997.<\/p>\n<p>While there was a case for learning from the experience of other central banks around the world \u2013 something Truss has proposed \u2013 there would be risks in any attempt to give politicians more of a say over how to set interest rates.<\/p>\n<p>\u201cI think it\u2019s perfectly reasonable to look at international experience \u2026 and see how its how it\u2019s operating,\u201d Ramsden said. \u201cThat\u2019s quite distinct \u2026 from going back and revisiting independence itself.\u201d<\/p>\n<p> (Writing by William Schomberg; editing by David Evans)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/?attachment_id=2735725\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/08\/tagreuters.com2022binary_LYNXMPEI7808R-VIEWIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI7808R-VIEWIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By William Schomberg and Andy Bruce LONDON (Reuters) \u2013 The Bank of England will probably have to raise interest rates further from their current 14 year-high to tackle inflation pressures<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1596662","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1596662","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1596662"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1596662\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1596662"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1596662"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1596662"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}