Following Thursday's Bank of England 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 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.
