Further comments are out by the Bank of England’s MPC member Saunders, as he expresses his take on the impact of the trade concerns and Brexit uncertainty as well as on the monetary policy.
Solid real income growth could continue and do better than expected, conditional on a smooth Brexit.
No-deal Brexit would lead to weaker business investment.
Rising number of people surveyed who don’t know where inflation is going is a “slight area of concern”.
Lack of public knowledge of inflation may reflect disconnect between public and BOE, or drift away from traditional news media.
It is “very useful” for BOE policymakers to give general guidance on outlook for policy.
Sees no case for presenting quarterly interest rate forecasts, would give false precision.
Does not believe in signalling policy decisions in advance with code words such as “extreme vigilance”.
BOE can cut rates close to zero, would not go to negative rates.
Can expand QE asset purchases further if needed.
Global trade tensions are main external risk to UK, Brexit biggest domestic risk.
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