BOE's Ramsden: CPI inflation at 7.9% remains much too high

<p>Comments from Bank of England deputy governor for markets and banking, David Ramsden, at the Money Macro and Finance Society. The subject of his speech was quantitative tightening. </p><ul><li>QET should be thought of as operating in the background</li><li>Repeats that he would like to increase the pace of gilt stock reduction</li><li>Inflation has begun to fall significantly but remains much too high</li><li>If there is evidence of persistent pressures, then further mon pol tightening would be required</li><li>I am not going to comment on the detail of the data published since the June meeting. The
August MPC round starts soon and will be completed with our announcement on 3 August.</li><li><a href="https://www.bankofengland.co.uk/speech/2023/july/dave-ramsden-speech-on-quantitative-tightening-chaired-by-money-macro-and-finance-society" target="_blank" rel="nofollow">Full speech</a></li></ul><p>Key line: </p><blockquote>Taken together, for me personally, these factors support a carefully considered increase in the pace of reduction in the stock of gilts in the twelve months ahead reflecting: the completion of the CBPS unwind; the reduced need for aiming off for learning; and evidence so far on marketing functioning. I emphasise careful –like the MPC I want QT to
set a gradual and predictable pace for unwind and to let it operate in the background, after all.</blockquote><p>Overall, there isn't much to move markets here and GBP/USD remains down 139 pips to 1.2895.</p>

This article was written by Adam Button at www.forexlive.com.