(Finance) – “The sharp decline in inflation overall at 4.0% in January, compared to 10.1% a year ago undoubtedly encouraging. The restrictive orientation of monetary policy has increasingly weighed on activity until 2023 and, despite persistent uncertainties about official data, has led to an easing of the labor market”. Dave Ramsdendeputy governor of the Bank of England, in a speech delivered at the Association for Financial Markets in Europe (AFME) conference.
“I support the more balanced perspective on inflation risks outlined in the latest forecasts from the Monetary Policy Committee (MPC),” he added.
“Although services inflation and wage growth have declined slightly more in recent months than we predicted last fall, key indicators of inflation persistence remain high – Ramsden said – As for my vision of the future, I am looking for further evidence on how entrenched this persistence will be and therefore on how long it will be necessary to maintain the current level of the bank interest rate”.