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The UK inflation risks increased due to the stronger growth of the salary, said the senior bank from England, as he emphasized the need to continue with the “gradual” mitigation of monetary policy.
Dave Ramsden, Deputy Governor in Boe And one of several members of the Committee for his footsteps said that he now saw more “two -sided” risks for the appearance of inflation, adding that he became less sure of the prospect of the UK’s labor market.
The salary growth overpowered the expectations of BOE, and the central bank predicts that consumer prices inflation will be accelerated to 3.7 percent later this year, which complicated its plans for lower interest rates. Boe trimmed the rates For a quarter of points In February, while envisaging a combination of slow growth and taking on inflation.
Ramsden did not take away the majority of the monetary policy committee at his December meeting, when The footsteps are retainedadvocating for a quarter reduction. At the last meeting, he voted with the majority that the meters were reduced to 4.5 percent.
“Compared to my position over the past year, I am now less sure than I have been about the prospects for the labor market in the UK and its implications on the future persistence and growth of inflation,” Ramsden said in South Africa on Friday.
“Due to the evidence of recent months, I no longer think that the risks are to maintain a rapidly target goal in the medium term. Instead, I think they are two -sided, which reflects the potential for more inflation and disinflation scenarios.”
Ramsden said that in the short -term indicators he saw some “development”, especially on wages. Annual growth in the private sector in the fourth quarter rose to 6.2 percent 4.9 percent in three months to December.
Ramsden said that wage growth should remain at that level in the current quarter, which is a full two percentage points more than expected a year ago. At the same time, however, with Drops of vacancies And slowing down the growth of jobs, Ramsden said that the demand for labor could continue to make “much more significant in the near future”.
He added that his central view was that the disinflation process remained intact.
“Considering the increased uncertainty and risk of inflation on both sides-short-term prospects to inflation and from the development of the global economy-I am more confident than I was that a convenient gradual and careful approach to withdrawing financial restriction is appropriate,” Ramsden said.
