Further monetary policy easing likely, MPC member says

Industry News | 04/09/20

Michael Saunders, member of the Bank of England’s Monetary Policy Committee, has argued that further policy loosening may be needed to support the economy and ensure inflation returns to 2%.

During an online webinar, he said: “Looking forward, I suspect that risks lie on the side of a slower recovery over the next year or two and a longer period of excess supply than the forecast in the August MPR. If these risks develop, then some further monetary loosening may be needed in order to support the economy and prevent a persistent undershoot of the 2% inflation target.”

Saunders predicts that unemployment will “rise significantly” in coming quarters as the furlough scheme winds down and workforce participation recovers.

Source: financial reporter