BOE’s Saunders: Question of paring back bond buys early to be under consideration at forthcoming meetings
|“The question of whether to curtail our current asset purchase program early will be under consideration at our forthcoming meetings,” the Bank of England (BOE) policymaker Michael Saunders said in his scheduled speech on Thursday.
Additional comments
“Options to withdraw stimulus include curtailing QE (ending it in the next month or two) and/or further policy action next year.”
“If bank rate does rise in the next year or so, it is likely that any rise would be relatively limited.”
“Risk management considerations have limits.”
“There are increasing risk considerations on the other side, in particular that continuing with asset purchases when CPI inflation is above 3% and the output gap is closed.”
“Activity seems to have recovered a bit faster than May forecast.”
“Risks lie on the side that output gap will close earlier than previously expected.”
GBP/USD spikes towards 1.3900
GBP/USD caught a fresh bid wave on the hawkish comments from Saunders, as it jumps towards 1.3900.
At the time of writing, the cable rises 0.14% on the day, trading at 1.3876, retracing from daily highs of 1.3885 reached in the last minutes.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.