(Bloomberg) — Bank of England Deputy Governor Clare Lombardelli said policymakers need to move carefully as they gradually cut interest rates.

Delivering her first speech since joining the BOE earlier this year, Lombardelli said the UK has made “good progress on disinflation” but “the more persistent components of inflation and uncertainties around how the labor market will evolve are cause for concern.”

“I support a gradual removal of monetary policy restriction and will be monitoring the flow of data over the coming months so we can calibrate our policy path as needed,” she said.

“We need careful observation of all the relevant economic data and intelligence as we seek to gradually reduce policy restriction.”

Lombardelli, who voted with the majority to cut rates a quarter point to 4.75% at this month’s meeting, was talking at the BOE Watchers Conference in London.

She said the risks to inflation were broadly balanced. “But at this point I am more worried about the possible consequences if the upside materialized, as this could require a more costly monetary policy response.”

A worse-than-expected PMI reading for November “may suggest some slowing in the UK too, although I don’t take a strong signal from a single release. Given the lags in policy it would be important not to act late if the economy moved in this direction,” she said.

The topic of her talk was the BOE’s response to the Bernanke Review of the BOE’s forecasting record. The former US Federal Reserve Chair Ben Bernanke said changes should be made.

Lombardelli, who is leading the BOE’s response, said: “This program is going to take time to work through – years not months.”