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- BoE's MPC member Saunders: MPC has ample scope to tighten monetary policy if required to restrain inflation - Reuters
BoE's MPC member Saunders: MPC has ample scope to tighten monetary policy if required to restrain inflation - Reuters
- We have various options in our tool kit to support the economy if additional easing is required
- A jobless rate of well above 5% would almost certainly indicate that we are some way from closing the output gap sustainably
- Shortfall in activity vs likely post-pandemic path for potential output once temporary effects fade is large now; unlikely to close in next few quarters
- As long as this shortfall persists, it would be hard to argue that output gap has closed sustainably
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