• BoE's MPC member Michael Saunders: It is unlikely that data until June meeting would negate case for further stimulus

Notícias do Mercado

28 maio 2020

BoE's MPC member Michael Saunders: It is unlikely that data until June meeting would negate case for further stimulus

  • It is safer to err on the side of easing too much
  • And then tightening later if needed
  • Risks to economy are to the downside
  • 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
  • A relatively slow recovery would be costly
  • Sees risks of UK falling into slip into lowflation trap that is much harder to escape
  • The risks of a pickup in inflation are pretty negligible
  • Picture of a dramatic fall in output is clear-cut
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