Ramsden on sticky inflation, AS tax cuts and Table Mountain

Ramsden asked on sticky inflation:

• Says MPC's headline inflation forecast is in line with the forecast of a year ago and is less than half what it was a year ago. But that's been driven by a larger decline in energy than expected while services inflation has been stickier and higher than expected - and that's a sign that UK inflation is becoming much more "home grown" - that's harder to squeeze out of the system with wage growth.

Ramsden asked if tax cuts are inflationary.

• Says last set of forecasts didn't take into account Autumn Statement - will take a first look at this next week ahead of the MPC meeting and formally incorporate into Feb forecasts. Will be able to look more into persistence in inflation ahead of Feb - and it's in services that we see most stickiness.

Ramsden asked on Table Mountain and his comments that it'll take inflation 2 years to get back to target and whether market is pricing too many cuts.

• He says he can't speak that it's a concerted communication effort but that based on the MPC's current forecast need rates restrictive for an extended period. But given risks of persistence and the fact it takes a year from now to get inflation to 3% and then another year to get to 2%. See upside risks. This is based on forecasts projected - not making any commitment to where rates will be - they are conditional on the outlook for the economy - they are data dependent.