It comes just a week after an MPC meeting in which there was no indication that borrowing costs could be cut. Share Similarly, if the UK avoids a no-deal Brexit, he said: “Monetary policy also could go either way and I think it is quite plausible that the next move in Bank rate would be down rather than up. Following his remarks, the sterling has fallen by 0.3 per cent against the dollar to 1.229, although it has recovered slightly from its initial dip to 1.227. LONDON, ENGLAND – JANUARY 25: A taxi drives past the front of the Bank of England in London’s financial district after it was announced that UK economy shrank by 0.2% during the last quarter of 2010 on January 25, 2012 in London, England. The official economic figures, released by the Office for National Statistics, come a day after they calculated that Government debt had risen to an all-time record of 1 trillion GBP. (Photo by Oli Scarff/Getty Images) Michael Searles Tags: Bank of England UK interest rates Saunders said that Brexit had meant uncertainty for around 50 per cent of businesses and that while it had only had a modest effect on UK growth in 2017 and 2018, this year there was evidence of weaker growth. “In making the case for a cut now it conforms to the belief in many in the market that the Bank is barking up the wrong tree with its slight tightening bias in its forward guidance,” he said. “The economy could follow very different paths depending on Brexit developments,” Saunders said at a business event in Barnsley. “But in my view, even assuming that the UK avoids a no-deal Brexit, persistently high Brexit uncertainties seem likely to continue to depress UK growth below potential for some time, especially if global growth remains disappointing. Bank of England could cut interest rates if Brexit uncertainty persists, says MPC member The Bank of England may need to cut interest rates even if a no-deal Brexit is avoided, according to a member of the monetary policy committee (MPC), which sets the rates. Chief analyst at Markets.com, Neil Wilson, says the comments show the Bank are “barking up the wrong tree”. The rate-setter also acknowledged that the appropriate policy response to a no-deal Brexit could go up or down, dependent on how supply, demand and exchange rates are affected. Read more: EU’s Juncker says Britain to blame if stalemate ends in no-deal Brexit Ad Unmute by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeFinanceChatterViewers Had To Look Away When This Happened On Live TVFinanceChatterUndoNoteableyJulia Robert’s Daughter Turns 16 And Looks Just Like Her MomNoteableyUndoDaily FunnyFemale Athlete Fails You Can’t Look Away FromDaily FunnyUndoPast Factory4 Sisters Take The Same Picture For 40 Years. Don’t Cry When You See The Last One!Past FactoryUndoMisterStoryWoman files for divorce after seeing this photoMisterStoryUndozenherald.comDolly Finally Took Off Her Wig, Fans Gaspedzenherald.comUndoYourDailyLamaHe Used To Be Handsome In 80s Now It’s Hard To Look At HimYourDailyLamaUndobonvoyaged.comThese Celebs Are Complete Jerks In Real Life.bonvoyaged.comUndoJournalistateTeacher Wears Dress Everyday, Mom Sets Up CamJournalistateUndo “One scenario is that Brexit uncertainty falls significantly and global growth recovers a bit. In this case, some further monetary tightening is likely to be needed over time. whatsapp Bank barking up wrong tree Read more: Small businesses need ‘meaningful financial assistance’ to prepare for no-deal Brexit, FSH warns “Of course, the monetary policy response to Brexit developments will also take into account other factors including, in particular, changes in the exchange rate and fiscal policy.” Saunders concluded that: “In steering through these uncertainties, the MPC will of course be guided by our remit and the aim of ensuring a sustainable return of inflation to the 2 per cent target in a way that supports output and jobs.” Friday 27 September 2019 9:19 am “The comments from Saunders are clearly an added weight on the pound.” whatsapp “Another scenario, and this is perhaps more likely to me, is of prolonged high Brexit uncertainty,” he said. “In such a scenario – not a no-deal Brexit, but persistently high uncertainty – it probably will be appropriate to maintain an expansionary monetary policy stance and perhaps to loosen further. 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