Remarks by BOE policymaker, Michael Saunders
- Assumptions are uncertain in light of omicron variant
- Within the range of possibilities that it could significantly affect economic outlook
- In considering if and when to adjust rates, there is always a case to wait for data
- But a continued delay could also be costly
- A delay could require more abrupt and painful policy tightening later
- It is likely that any rise in bank rate would be limited
It sounded as if he's taking a bit of a step back from his hawkish dissents in recent months but he is quick to clarify that any potential delays to tightening policy may be a misstep by the central bank in the bigger picture of things.
In case you need a reminder, Saunders has been one to advocate for a hike in the bank rate in November alongside Ramsden here.
