Measures announced in the Autumn Statement this month will not prevent the Bank of England from hiking rates further, according to deputy governor Dave Ramsden.
Speaking yesterday (24 November), Ramsden warned the central bank still needed to tighten monetary policy "to ensure a sustainable return of inflation to target". He pushed back against Chancellor Jeremy Hunt's claims earlier this month, who said in the Autumn Statement that the £55bn in budget deficit reduction announced would give room for interest rates to be "significantly lower". Ramsden explained the vast majority of measures in the statement "do not come into effect until April 2025 so will have very little effect" on the three-year forecast horizon used by the bank. Busines...
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