The risk of persistent inflation pressures are receding, according to Bank of England deputy governor Dave Ramsden.
In a speech on Friday (April 19), Ramsden said inflation could remain around the 2 per cent target in the coming years.
He was one of the members of the Monetary Policy Committee who voted in March to hold interest rates at 5.25 per cent for the fifth month in a row.
Ramsden said: "Over the last few months I have become more confident in the evidence that risks to persistence in domestic inflation pressures are receding, helped by improved inflation dynamics.
"As we set out in our March 2024 minutes there is a range of views among the MPC on these risks.
" For me the balance of domestic risks to the outlook for UK inflation, relative to the February MPR forecasts, is now tilted to the downside, with a scenario where inflation stays close to the 2 per cent target over the whole forecast period at least as likely.
"This leaves the UK as less of an outlier and more of a laggard in terms of recent inflation performance, and one that is now catching up quickly."
The deputy governor said the next Monetary Policy Committee meeting on Thursday, May 9 will be an opportunity to resist forecast judgements.
He added: "At the MPC’s last meeting in March I was one of eight members who voted to hold bank rate at 5.25 per cent.
"Over the last few months, I have become more confident in the evidence that risks to persistence in domestic inflation pressures are receding, helped by improved inflation dynamics."
tara.o'connor@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com.
