Bank's Tucker says inflation outlook worsened

LONDON (Reuters) - Bank of England policymaker Paul Tucker said his view at this month's policy meeting was that the outlook for both inflation and output had deteriorated.

"My take at our recent July meeting was, broadly, that since the May inflation report, the near-term outlook for inflation had deteriorated, underlining the risk that the rise in commodity prices will feed through to wage and price-setting," he said in remarks made at a Bank of Canada conference last week, but released by the Bank of England on Thursday.

Tucker was one of seven Monetary Policy Committee members who voted to leave rates at 5 percent this month.

Tucker said the outlook for demand and output had also deteriorated "which in degree should help to contain those upside risks to inflation".

"Going forward, a key judgment will be whether the prospective slowdown will be sufficient to bring inflation back to target with the current level of bank rate, taking into account the tightening in some broader measures of monetary conditions," he added.

(Reporting by Adrian Croft; Editing by Clara Ferreira-Marques)