Text of speech by MPC member Michael Saunders
UK economy may not slow as much as forecast
UK to see lower growth and higher inflation
2017 growth more likely to be clearly above 1.0%
His vote at next meeting will be data dependent
UK has more slack that the BOE forecast in Aug but will grow more strongly
Vote will depend on which forces dominate
- Suspects UK equilibrium jobless rate is probably below 5.0%
- There's substantial scope for more QE if needed and recent experience suggests it still has traction
He's another shying away slightly from the August overview, though the pound is taking no notice right now, as it didn't to the better PMI data this morning.
