A deputy governor at the Bank of England has said only “modest tightening” of monetary policy may be necessary to get inflation under control.
Dave Ramsden said consumer inflation could fall below the bank’s 2% target within two years if it followed the market policy trajectory and that he did not see the interest rate rising to “anything like its pre-2007 level of 5% or above”.
Speaking at the National Farmers’ Union annual conference, Ramsden said “further modest tightening” would prevent “high inflation becoming embedded in wage and price setting”, but added that “tightening monetary policy too much” would be risky.
