BOE’s Saunders: We no longer need as much stimulus as previously

Dhwani Mehta FXStreet

“We no longer need as much stimulus as before,” the Bank of England (BOE) policymaker Michael Saunders said in his scheduled speech on Tuesday.

Additional quotes

“Worry that continuing asset purchases when CPI is 4% might cause medium-term inflation expectations to drift higher.”

“This could cause a more severe monetary policy response later.”

“Should ease off the accelerator rather than apply brakes.”

“If bank rate does rise in next year or so, it would be relatively limited.”

“UK will not face a persistent inflation problem.”

“Maybe right to think of rates going up in next year or so, depending on economic conditions.”

“Suspect long-term effects of a pandemic on economy likely to be relatively small.”

Market reaction

The above comments have little to no impact on the pound, as GBP/USD closes in on the 1.3800 support. The US dollar rebound derives its strength from the rally in Treasury yields.

The spot was last seen trading at 1.3810, down 0.16% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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