“The question of whether to curtail our current asset purchase program early will be under consideration at our forthcoming meetings,” the Bank of England (BOE) policymaker Michael Saunders said in his scheduled speech on Thursday.
“Options to withdraw stimulus include curtailing QE (ending it in the next month or two) and/or further policy action next year.”
“If bank rate does rise in the next year or so, it is likely that any rise would be relatively limited.”
“Risk management considerations have limits.”
“There are increasing risk considerations on the other side, in particular that continuing with asset purchases when CPI inflation is above 3% and the output gap is closed.”
“Activity seems to have recovered a bit faster than May forecast.”
“Risks lie on the side that output gap will close earlier than previously expected.”