MNI BRIEF: BOE Saunders: Might Need Modest Tightening Ahead

UK financial market assumption of 50 basis points of tightening over the next three years on the MPC's central forecast showed inflation around target, suggesting that the yield curve was "in a reasonable place," Bank of England Monetary Policy Committee member Michael Saunders told the Treasury Select Committee Monday.

A modest tightening, of 50 basis points, may be justified down the line, he said, although he rejected the view of Chief Economist Andy Haldane that higher near-term inflation was more likely than not to become embedded, saying that he did "not see evidence the economy is moving into sustained excess demand"