Comments from Michael Saunders in London
– Current policy is clearly accommodative and would provide stimulus even after a modest rate rise
– Most evidence points to growth in Q1 despite the retail weakness
Some very mildly hawkish comments from Saunders. There’s no mention of tolerance levels for inflation but he’s taking the line that a hike isn’t dependent on the Brexit outcome nor would one mean that the BOE would stop stimulating via its re-investment of QE.
BOE’s Saunders: BOE is not obliged to delay a rate move until certainty of Brexit implications
