BoE's Saunders says rates likely to rise faster if Brexit goes smoothly

Bank of England Monetary policy Board member Michael Saunders

From the text of his speech, Reuters with the quick summary headlines:

• UK economy to move into excess demand in next year or two if it adjusts smoothly to Brexit
• Says capacity pressures likely to build faster than BoE projections in event of smooth Brexit
• Policy stance would need to return to something like neutral rather earlier than yield curve implies in event of smooth Brexit
• Says monetary policy implications of different Brexit outcomes could go either way

Little response from GBP. It had a good move higher during the London morning on reports of progress on the Brexit deal.

• EU and UK negotiators said to have agreed on draft text of future ties post-Brexit