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Saunders asked on neutral rate and whether rates will go above it

BOE
  • Saunders: Asked on a poll result that showed 65% of audiance members saw inflation in the UK and US at 3%+ in 2024 that it made him "uncomfortable".
  • Saunders said that the neutral rate is somewhere in the range 1.25-2.50% (taking a signal from financial markets). "it would be nice to be more precise about that, but I'm not sure I can be."
  • Saunders asked if BOE may need to put rates above the neutral rate: "It's possible. The risk of that rises in a scenario where inflation expectations rise further. I'm not sure that's my central expectation at the moment but I'd much rather not be in that scenario."

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