Interview with Michael Saunders, member of the Monetary Policy Committee of the Bank of England (11.08.2017)
Bank of England spokesman Michael Saunders told Evening Standard about his assessment of the situation in the country. He is optimistic about the future of the British economy. Saunders noted the decline in unemployment in the country, as evidenced by recent statistics. He believes that wage growth and inflation can be expected to accelerate in the near future. According to Saunders, the Central Bank needs to be more active and raise interest rates.
After the referendum on the UK’s exit from the EU, the country’s economic development has slowed down amid weak growth in British salaries and increased inflationary pressures. The negative impact of Brexit is likely to persist for a long time. The British economy will grow, but the growth rate will be slower. The data from the private sector survey showed that the UK’s current GDP growth rate is about 2 percent per year. Michael Saunders.
August 3, at the Bank of England meeting, it was decided to keep the rate at the current level of 0.25 percent per annum. “Two members of the Monetary Policy Committee of the Central Bank voted against. This is Ian McCafferty and Michael Saunders. In their opinion, the interest rate should be raised by 25 basis points.
Bank of England revised its forecast for GDP growth in 2017. He now expects the country’s economy to grow by 1.7 percent this year instead of 1.9 percent according to the previous forecast.