Bank of England deputy governor for markets and banking David Ramsden on Friday admitted improved inflation dynamics in the UK and unveiled that over the last few months, he had become more confident in the evidence that risks to persistence in domestic inflation pressures were receding.
The official also said that he sees the balance of domestic risks to the outlook for UK inflation, is now tilted to the downside, relative to the BoE's February forecasts. “This leaves the UK as less of an outlier and more of a laggard in terms of recent inflation performance, and one that is now catching up quickly,” he added.
In addition, Ramsden noted that the divergence between inflation performance in Britain and the euro area partly reflected the timing of the UK energy interventions relative to those across Europe, which prolonged the impact of high-energy prices on UK inflation. He also suggested that the April data is very likely to show the UK converging in line with the Eurozone inflation.