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How BOE nominee Michael Saunders sees the economy and rates

Michael Saunders was revealed as the replacement for Martin Weale today

Central bank appointees are usually from academia or the executive ranks so it's difficult to get a sense of where they stand.

That isn't the case with Saunders, who is extensively on record has the chief UK economists at Citi. His current forecast is for the first BOE hike in Q2 2017 with rates rising to 1.00% by the end of that year and 2.00% a year later.

Just yesterday, a note from Citi co-authored by Saunders showed inflation rising at a faster rate than BOE projections.

In his recent commentary he's been extremely concerned with a Brexit. He won't take his spot on the MPC until after the June vote so there will be plenty of opportunity to shape his view after the referendum.

On the economy, Citi's current forecast is for 2.0% GDP growth this year but they've hinted at lowering that recently.

Overall, he strikes me as a dove. Or at least someone who is far more dovish than Martin Weale.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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