BOE’s Saunders Says Markets Right to Price in Quicker Tightening
Most Read from Bloomberg
A Bank of England policy maker said markets are right to price in an earlier interest-rate hike than previously expected as inflation accelerates.
Michael Saunders, a member of the central bank’s Monetary Policy Committee, was quoted as telling the Telegraph he’s concerned that capacity pressures and higher pay growth are driving an inflation pickup that “could become more persistent unless monetary policy responds.”
“I think it is appropriate that the markets have moved to pricing a significantly earlier path of tightening than they did previously,” said Saunders, one of two policy makers who voted last month to end the BOE’s bond buying program immediately.
Saunders has emerged as one of the more hawkish BOE officials in the past few months and his comments will vindicate investors who are betting on an imminent rate hike, though he…