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MNI BRIEF: BOE Saunders: Core Inflation Likely Subdued

LONDON (MNI)

The Bank of England's Monetary Policy Committee's most recent central forecast probably overstated the drop in potential output due to the Covid shock and as a result the output gap was likely to close less rapidly than assumed, committee member Michael Saunders said Friday. This would feed through to subdued core inflation and Saunders left the door open to further easing despite the recovery, with negative rates a possibility from August.

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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