Michael Saunders of the Bank of England also supports cutting rates. The central banker who turned from backing tighter monetary policy but shifted to voting for rate cuts has reiterated his stance.
Echoing Mark Carney, the Governor of the BOE, he said that considerations favor a relatively prompt and aggressive response to downside risks.
Saunders added that monetary policy space is limited but that it would be appropriate to maintain and expand the bank’s accommodative policy. He said that economic growth is sluggish with growing spare capacity.
GBP/USD has retreated from the highs and trades around 1.30. UK inflation figures are due out next.