BoE MPC member Michael Saunders, a known hawk, said in a speech that “policy is not on auto pilot”. He added. “the pace, and scale, of any monetary policy changes will depend on economic developments and the outlook”.
“In particular, at the December meeting, a key consideration for me will be the possible economic effects of the new Omicron Covid variant, and the potential costs and benefits of waiting to see more data on this before – if necessary – adjusting policy,” he said.
“It is likely that any rise in Bank Rate will be limited given that the neutral level of interest rates remains low. Provided we do not delay too long, it should be a case of easing off the accelerator rather than applying the brakes,” he noted.
