BOE's Saunders says central bank isn't bound by forecasts calling for rate hikes
Comments by BOE MPC member, Michael Saunders, in a Bloomberg interview
- UK economy is weak and clearly not overheating
- BOE can't stop a no-deal Brexit from being 'painful'
- Says a no-deal Brexit would push the pound lower
Dovish stuff by Saunders ahead of the central bank meeting next week. It's very much a continued shift in tone for the BOE as they look to ease market expectations in anticipating that they will stick with their "gradual but limited" rate hikes.
With global central banks set to ease monetary policy further, it's hard for the BOE to go against that especially with the economy in such a weak state. The pound is brought to its lows for the day with cable slipping to a low of 1.2438 from 1.2450 levels earlier.