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MNI BRIEF: Case For Lower BOE Asset Sale Threshold: Saunders

(MNI) LONDON
LONDON (MNI)

The Bank of England MPC could lower the policy rate threshold for starting unwind of quantitative easing, committee member Michael Saunders said in a Q and session Friday, as noted in a recent MNI story.

The current policy is that Bank Rate has to rise to 1.5% before the Bank begins to unwind QE and Saunders said that there was "an argument to set a slightly lower threshold." A review is going on at the Bank on the approach to easing policy and Saunders said that a decision on whether to sell gilts or let them run-off, or to do a mix of both, would be taken 'at the time'.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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