MNI BRIEF: Labour Market Easing, Says BOE's Ramsden

Bank of England Deputy Governor Dave Ramsden said on Tuesday restrictive monetary policy has eased labour markets but offered no fresh steer on the timing of the cycle’s first rate cut.

While Ramsden said the slide in headline inflation from just over 10% a year ago to 4.0% in January was "undoubtedly encouraging" he struck a cautious note over policy easing in a speech at an AFME event.

"Although services inflation and wages growth have fallen by somewhat more in recent months than we had expected last autumn, key indicators of inflation persistence remain elevated," he said. (See MNI INTERVIEW: Better ONS Data Suggest Easing UK Labour Market)

In other remarks Ramsden noted how in its quantitative tightening the BOE has distinguished between assets held for monetary policy purposes and the level of reserves needed to meet bank demand, while the Fed looks to maintain ample reserves.