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Bank of England (BoE) Deputy Governor Dave Ramsden spoke about monetary policy in a world of geopolitical fragmentation at Stellenbosch University in South Africa on Friday. Key quotes Gradual and careful approach needed to rate cuts. That doesn’t always mean the descent has to be slow. There may be circumstances when a slower-than-expected descent is justified but there will also be times when conditions require that the pace has to quicken. MPC need to judge evidence afresh each meeting. Risks to hitting 2% inflation are no longer just to downside, they are two sided. Core disinflationary process remains intact. Compared with my position throughout last year, I am now less certain than I was about the outlook for the UK labor market. Impact of US tariffs could be inflationary or disinflationary for the UK. Entirely possible that the current supply capacity is even weaker than we assessed it to be and may be more persistently weak through the forecast. I voted for 25 bps cut in December 2024 due to concern that interaction of weaker demand with a loosening labour market could be multiplicative, opening up an excessive degree of slack. Market reaction At the time of writing, GBP/USD is losing 0.20% on the day to trade near 1.2580.   Source: https://www.fxstreet.com/news/boes-ramsden-gradual-and-careful-approach-needed-to-rate-cuts-202502280703

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Filed under: News - @ February 28, 2025 7:22 am