Ex- Bank of England monetary policy maker Saunders sees inflation undershooting, rate cuts

Following Thursday's Bank of England Bank of England The Bank of England (BoE) functions as the United Kingdom’s central bank and is one of the key drivers of monetary policy in Europe. As one of the world’s oldest central banks and established in 1694, the BoE is owned by the British government. Its central mandate involves maintaining and targeting interest rates while using other tools to help either stimulate or contract the economy. Moreover, the BoE is responsible for producing the UK’s bank notes as well as supervising key bank payment sy The Bank of England (BoE) functions as the United Kingdom’s central bank and is one of the key drivers of monetary policy in Europe. As one of the world’s oldest central banks and established in 1694, the BoE is owned by the British government. Its central mandate involves maintaining and targeting interest rates while using other tools to help either stimulate or contract the economy. Moreover, the BoE is responsible for producing the UK’s bank notes as well as supervising key bank payment sy Read this Term rate hike:

• ForexLive European FX news wrap: BOE delivers 25 bps rate hike as expected
• BOE's Bailey: Inflation remains too high
• BOE's Bailey: Past rate hikes will weigh more on the economy in the coming quarters

Bloomberg TV (gated) interviewed a former Bank of England Monetary Policy Committee (MPC) member Michael Saunders.

• “There’s a strong likelihood that inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term will undershoot the Bank of England’s forecast by quite a large margin in April,”
• “Interest rates may well have peaked. If they go up, it’s only one further hike. But I’d say this big tightening cycle since late 2021 is now probably over.”
• “Given the drop in energy prices which is going to feed through and the weakness in the survey guide to firms’ pricing, I think it’s more likely that inflation in this quarter will be close to 7%”
• “That’s really quite a big undershoot. If it comes out like that, it would be the biggest undershoot in 20 years. If that comes through I think the likelihood is that interest rates will not be going up again.”

Saunders made a name for himself on the MPC as a hawk's hawk. This makes such remarks notable indeed.