Monday, 16 January 2017

BOE’s Saunders : Economy May Sustain Lower Unemployment Without Fueling Inflation

In World Economy News 14/01/2017

U.K. unemployment could fall further without fueling faster inflation, a senior Bank of England policymaker said Friday.
Michael Saunders, a member of the Bank of England’s interest-rate-setting Monetary Policy Committee, said in a speech in London that shifts in the job market, such as the rise of low-skilled, insecure work, meant that wage growth wouldn’t necessarily increase as joblessness falls, as it did in previous decades.
Mr. Saunders said he expected annual inflation to accelerate in 2017 regardless, as a falling pound pushes up the cost of imports. He said he was prepared to cut or raise rates depending on how inflation and the broader economy develop.

Source: Dow Jones