Bank of England Deputy Governor Dave Ramsden signaled that the latest market path for interest rates is too loose to get inflation back to target sustainably. In a speech in London, Ramsden said the “evolution of the market curve” since the BOE’s latest set of forecasts at the start of November “other things equal, would mean that financial conditions were less restrictive.” The BOE held rates this month at 5.25% and stressed that monetary conditions will need to remain tight for some time. The current policy is “higher for longer” rather than raise rates further only to cut them shortly after. However, markets are ... (full story)