BOE's Saunders says probably appropriate to cut rates, GBP/USD struggles with 1.30

Yohay Elam FXStreet

Michael Saunders of the Bank of England also supports cutting rates. The central banker who turned from backing tighter monetary policy but shifted to voting for rate cuts has reiterated his stance.

Echoing Mark Carney, the Governor of the BOE, he said that considerations favor a relatively prompt and aggressive response to downside risks.

Saunders added that monetary policy space is limited but that it would be appropriate to maintain and expand the bank's accommodative policy. He said that economic growth is sluggish with growing spare capacity.

GBP/USD has retreated from the highs and trades around 1.30. UK inflation figures are due out next.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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