Bank of England rate-setters are sounding the alarm on inflation, warning that the central bank may need to hold off on further interest rate cuts

Dave Ramsden, the Bank of England deputy governor, said the United Kingdom’s inflation risks had increased in the past few months. The policymaker revealed that inflation risks had risen due to the increased pay growth.

Increased uncertainty suggests that the Bank is likely to reduce interest rates more gradually, the policymaker cautioned.

Bank of England Deputy Governor Dave Ramsden said on Friday that he saw risks to the BoE's inflation target as being two-sided, rather than skewed downwards as before, though he noted that BoE rate cuts did not necessarily need to be slow.

Dave Ramsden, who is the bank's deputy governor for markets and banking, pointed to the combination of rising inflation and weak economic growth.