BoE's Saunders: UK neutral rate is a lot lower than in the past
|BoE MPC member - Michael Saunders was out on the wires in the last hour saying that the UK has missed out on 2-3 years of business investment on Brexit, though smooth Brexit transition would probably boost investments.
Additional quotes:
• Series of repeated Brexit cliff edges could cause investment to be subdued for a while.
• A no-deal Brexit would lead to a fall in the Sterling, raise inflation.
• Would expect interest rates to go a bit higher over time but the process won't be far or fast.
• UK neutral rate is a lot lower than in the past and is around 2%.
• UK real incomes have picked up in the past year and a Brexit deal would help economic outlook.
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.