LONDON, July 18 (Reuters) – Michael Saunders, a member of the Bank of England’s (BoE) Monetary Policy Committee, said on Monday that interest rates in Britain could hit 2% or even more, next year facing runaway inflation.
According to this official, who is in favor of a sustained rise in the cost of credit, there is nothing “incredible or unlikely”.
“But, instead of focusing on an accurate forecast of the interest rate over the next year, the main thing (in my opinion) is about the tightening cycle, which may still evolve,” he said. said in a speech Monday at the think tank Resolution Foundation.
Michael Saunders believes that the BoE can adjust its monetary policy if it tightens too much and if inflation expectations are better anchored.
Inflation in Britain hit 9.1% year on year in May, the highest in 40 years. (Reporting Andy Bruce and William Schomberg; French version Claude Chendjou, editing by Kate Entringer)