BoE's Ramsden says food prices weaker than expected but flags upside risks
Six of nine MPC members backed holding Bank Rate at 3.75% in September, the Bank of England's policy summary shows.
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Bank of England deputy governor Dave Ramsden said on Monday that UK food prices have come in weaker than expected. The Bank's September Monetary Policy Summary carries the same language, though it adds that external pressures may soon start pushing food prices back up.
The summary also shows six of nine Monetary Policy Committee members preferred to hold Bank Rate at 3.75% at the September meeting.
Ramsden's remarks on food came alongside separate comments the same day in which he said risks to the UK inflation outlook have become increasingly tilted to the upside, citing food costs and wage agreements, according to Reuters. He had earlier said inflation risks are now more likely to rise than fall.
Weaker food prices ease some near-term disinflation pressure and could buy the Bank of England a little more time before raising rates again. That shift is small: markets are already pricing five rate hikes through the end of 2027, and officials have pointed to wage growth and energy costs as the bigger drivers of persistent inflation. Ramsden's comment is a mild positive for gilt yields but does not alter the expected path of rate rises.