Economics
BOE Isn’t Tethered to Forecasts Suggesting Hikes, Saunders Says
- Comments suggest he’s not pushing for higher rates for now
- Policy makers announce their next decision on Aug. 1
Photographer: Simon Dawson/Bloomberg
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Brexit vulnerabilities may stop the Bank of England from raising interest rates even if its forecasts imply a need to do so, according to policy maker Michael Saunders.
A smooth departure from the European Union, which the bank’s forecasts assume, is very uncertain, Saunders said in a Bloomberg interview. That means that even relatively hawkish projections will have a smaller-than-usual influence on his immediate policy vote.