Comments by BOE policymaker, Michael Saunders
- And then tightening later if needed
- Risks to the economy are to the downside
- It is unlikely that data until June meeting would negate the case for further stimulus
- But with limited policy space, there is less scope to get the economy back on track
- Some recovery in economic activity is likely as lockdown eases
- Sees risks of the UK falling into a 'lowflation' trap
- The risks of a pickup in inflation are negligible
He's making it clear that he will push for more QE in the June meeting and I reckon other policymakers will feel compelled to do the same as well. But his remarks on the inflation outlook are relatively dovish i.e. current policy measures will stay for a long time.
He doesn't make any major mention to negative rates though, besides a mention of the 'neutral level of rates are inherently uncertain'. The full speech can be found here.
The pound has eased to a low of 1.2238 from around 1.2255 earlier before his remarks.
