BOE Rates May Have Already Peaked, Says Former Rate-Setter
- Michael Saunders says BOE is ‘pretty much done’ on hikes
- Weakening economy and jobs market will allow strategy shift
The Bank of England headquarters in the City of London.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
The Bank of England may be already done with its bid to stamp out sticky UK inflation after a cooling in the economy and jobs market, according to Michael Saunders, a former hawkish rate-setter.
Saunders, who served on the BOE’s Monetary Policy Committee between 2016 and 2022, said that “the emerging weakness in the economy” plus “signs that the labor market is beginning to loosen” will allow the BOE to shift strategy at this month’s meeting.