Bank of England Deputy Governor Dave Ramsden said Friday that while he would not rule out a further rate hike he was less worried than he had been about the risks of inflation expectations becoming detached from the inflation target.
Inflation expectations on a variety of measures had fallen back, easing the pressure on policymakers to act forcefully to push down on them, he told a Society of Professional Economists event in London. Ramsden voted with the majority for no change in Bank Rate at the previous two meetings and his comments suggest that the data will have to show fresh signs of more persitent inflation to make him join the hawks, with the most likely outcome a prolonged period of high, but stable, interest rates.
"On the basis of our latest projections a restrictive policy stance is likely to be warranted for an extended period of time," he said, describing his approach to policy as "watchful".