“It’s safer to err on the side of easing too much, then tighten if needed,” Bank of England (boE) policymaker Michael Saunders said while explaining while he voted to raise the target stock for asset purchases at the May meeting.
Additional takeaways
“Unlikely that data available at the June meeting would negate the case for further stimulus.”
“Preferable to remove uncertainty about the MPC’s willingness to expand asset purchases further.”
“Risks to the economy are to the downside.”
“With limited monetary policy space, there is less scope to get the economy back on track.”
“We do not want the economy to get stuck in a low-inflation rut.”
“Some recovery in economic activity is likely as the lockdown eases.”
“Picture of a dramatic fall in output is clear-cut.”
Market reaction
The GBP/USD pair fell on these comments and was last seen losing 0.06% on the day at 1.2243.
Share
