Comments by BOE policymaker Michael Saunders in the inflation report hearing
- Perhaps Q1 2019 growth will also slow
- Monetary policy implications of Brexit outcome could go either way
- Agrees with BOE's broad outlook for interest rates, conditioned on Brexit assumptions
Meanwhile, we're also hearing from BOE deputy governor Jon Cunliffe:
- Output surveys point to subdued activity in the near-term
- Outlook of course will be materially affected by Brexit outcome
- Strong Q3 growth probably reflects a recovery of weakness
- But does not contain much information about the future
- Forward-looking indicators are largely reflecting Brexit uncertainties
- Expects gradual tightening of policy
Not giving anything away here as they maintain that Brexit uncertainty remains at the forefront of what is driving their policy decisions. Apart from that, their view is that Q4 will show that growth is moderating following the one-off jump in Q3.
