BoE's Ramsden talks up another hike
(Kitco News) - BoE's Ramsden was been on the wires this morning and the Bank of England central banker has said that the risks posed by inflation mean that more rate hikes could be on the cards. He went on to say the BoE hasn't yet gone far enough on rate hikes. Last week the Bank of England raised its Bank Rate to 1.0%, its highest since 2009, and said further increases "may still be appropriate in the coming months" as it forecast that inflation was likely to go above 10% later this year, possibly causing a recession.
He went on to say "Given what we know about the U.K.'s labor market, I wouldn't be surprised if it turned out to be a bit tighter," Ramsden said. "I think there are upside risks on inflation (in) the medium term.". He also said he assumed the central bank would handle the process of selling government bonds as it reverses its quantitative easing program, not the Debt Management Office.
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Despite the talk of rate rises GBP/USD is trading down around 0.60%. The pair has broken 1.22 to the downside and is currently down 14.62% from the 2021 high of 1.4251. In general, the greenback has been strong across the board. Risk sentiment has also been pretty poor since the U.S. CPI print during yesterday's session.