BoE’s Ramsden: There will be a high bar to unwinding UK monetary easing


Bank of England (BoE) Deputy Governor Dave Ramsden said on Friday that they see risks to inflation broadly balanced, as reported by Reuters.

Additional takeaways

” We are seeing a reflation trade, especially driven by the US.”

“I see market moves as a reflation trade, not an inflation trade.”

“Whatever measure you look at, UK inflation expectations are well anchored.”

“Pick-up in UK gilt yields is a corollary of more positive news in the economy, not inflation worry.”

“There will be a high bar to unwinding UK monetary easing.”

“We do keep a close eye on markets, there has been volatility in recent days.”

“Gilt market functioning is orderly as of now.”

Market reaction

The GBP/USD pair showed no immediate reaction to these comments and was last seen losing 0.5% on the day at 1.3945.

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