Bank of England Deputy Governor Clare Lombardelli said she was worried about upside risks for British inflation and the central bank should move more slowly to lower borrowing costs as it approaches the end of its interest rate-cutting cycle.
“I am very worried that we are seeing more pressure on resources in the economy, and that obviously leads to price rises. I think you can see it in the labour market,” she told lawmakers on the Treasury Select Committee on Tuesday.
“I am also perhaps less convinced than others (on the Monetary Policy Committee) about how restrictive monetary policy is at the moment, as in how far we are from reaching the end of the cutting cycle.”
Lombardelli said that as the BoE approaches the end of its run of rate cuts “and you don’t know where it is, you might slow down a bit to try and anticipate and find your way a bit more.”
The BoE held its benchmark Bank Rate at 4% in November, a tight decision backed by five of the MPC’s nine members.
(Reporting by David Milliken）
