{"id":61138,"date":"2022-03-01T22:50:40","date_gmt":"2022-03-01T18:50:40","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=61138"},"modified":"2022-03-01T22:56:40","modified_gmt":"2022-03-01T18:56:40","slug":"boes-saunders-quicker-qt-helps-limit-overall-tightening-cycle","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/boes-saunders-quicker-qt-helps-limit-overall-tightening-cycle\/03\/01\/market-updates\/","title":{"rendered":"BoE&#8217;s Saunders: Quicker QT Helps Limit Overall Tightening Cycle"},"content":{"rendered":"\n<p>The Bank of England&#8217;s Michael Saunders says vote for a 50bp hike in February &#8221;does not necessarily imply that I believe that the level of rates one or two years ahead will be higher than the yield curve used for the February MPR.&#8221;<br><br>Saunders has pointed out that it is important to distinguish between the pace of tightening and the level of rates at the end of a tightening cycle.<br><br><strong>Key Comments<\/strong><br>Saunders says quicker tightening early on could help limit the overall tightening cycle<br><br>Vote for a 50bp hike in February does not necessarily imply that I would vote for a 50bp hike in the event that further tightening is required.<br><br>Saunders says case for policy to move in a larger step probably is greater when bank rate is clearly further away from the approximate level that, if maintained, would return inflation to target.<br><br>Saunders says not in favour of aiming to restore the lost potential output by \u201crunning the economy hot&#8221;.<br><br>Saunders says running the economy hot\u201d would simply produce an even more persistent inflation overshoot.<br><br>According to Saunders, maintaining a relatively loose policy stance under current conditions would be likely to produce a further undesirable rise in inflation expectations.<br><br>Says such an outcome would be costly to reverse and could limit the scope for prompt monetary easing the next time the economy needs support.<br><br>The comments of the policymaker offered on the back of a risk-off theme in markets on Tuesday. <br><br>The comments from Saunders, however, serve to stall the slide with the price a touch higher as it starts to correct from the session lows of 1.3298.  The price is now near 1.3310.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Bank of England&#8217;s Michael Saunders says vote for a 50bp hike in February &#8221;does not necessarily imply that I believe that the level of rates one or two years ahead will be higher than the yield curve used for the February MPR.&#8221;Saunders has pointed out that it is important to distinguish between the pace &hellip;<\/p>\n","protected":false},"author":13,"featured_media":47414,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[6967,6987,8143,8988,7580,7619],"class_list":["post-61138","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-boe","tag-inflation","tag-interest-rate-hikes","tag-michael-saunders","tag-monetary-policy","tag-uk-economy"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/61138","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=61138"}],"version-history":[{"count":3,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/61138\/revisions"}],"predecessor-version":[{"id":61143,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/61138\/revisions\/61143"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/47414"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=61138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=61138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=61138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}