Free Trial

BOE Saunders Backs Swift Hikes To Neutral Stance

  • Bank of England Monetary Policy Committee member Michael Saunders favours a swift return of the policy rate towards neutral, with inflation risks to the upside. Saunders, who was in the minority voting for a 50 basis point hike at the February meeting, warned of the risks of second round inflation effects from elevated inflation expectations and mounting pay pressures.
  • Headlines included:
    • Vote For 50 Bps Rise Doesn't Mean He'll Back It Again
    • Strength in energy prices likely to boost CPI
    • Energy impact on CPI likely to be temporary
    • CPI could stay above 2% target without action
    • Risks on stronger and more persistent inflation
    • Further modest tightening likely needed
    • Early rate rises may prevent rates rising high
    • Preference is to move quickly on rates
    • U.K. economy has significant excess demand (All BBG)

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.