David Ramsden
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.
- QET should be thought of as operating in the background
- Repeats that he would like to increase the pace of gilt stock reduction
- Inflation has begun to fall significantly but remains much too high
- If there is evidence of persistent pressures, then further mon pol tightening would be required
- 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.
- Full speech
Key line:
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.
Overall, there isn't much to move markets here and GBP/USD remains down 139 pips to 1.2895.