BOE’s Saunders: Quite likely that additional monetary easing will be appropriate

My hunch is that risks lie on the side of weaker growth

See a longer period of excess supply than forecast in the august mpr

Sees more persistent inflation undershoot

A downside scenario would be very costly

I consider it quite likely that additional monetary easing will be appropriate

There is no automatic time limit on our willingness to maintain a loose monetary policy stance

Relative to the MPR forecast, Brexit risks probably lie on the side of a thinner trade deal, a less-smooth transition.

Desire to self-insure against local COVID-19 lockdown risk would probably create widespread caution, desire for higher savings

There are no local versions of furlough, loan schemes, so households and businesses would bear brunt of local lockdowns.

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