LONDON, Dec 9 (Reuters) – The Bank of England should continue to cut borrowing costs gradually, Deputy Governor Dave Ramsden said in a report published on Tuesday, citing uncertainty around estimates for the neutral level of interest rates.
Ramsden said it would become harder to discern the effect of monetary policy in controlling inflation as the BoE cuts rates towards neutral, the level at which they neither stimulate nor restrain the economy.
“I therefore think a gradual removal of policy restraint remains appropriate, allowing the MPC to assess carefully the balance of risks to inflation as the evidence evolves…,” Ramsden said in a written report to lawmakers.
(Reporting by Andy Bruce and David Milliken; editing by Sarah Young)
