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Bank of England's Saunders sees growth holding up - Evening Standard

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Bank of England's Saunders sees growth holding up - Evening Standard

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LONDON (Reuters) – Britain’s economy is likely to hold up despite uncertainty about Brexit, and the jobless rate will probably fall further, according to one of the two Bank of England policymakers who are pushing to raise record-low interest rates. “The test will come going forward,” Michael Saunders told London’s Evening Standard newspaper in an interview published on Friday. “The amount of spare capacity is much less now than in the past few years. So it follows from that it would be normal for the response of policy, if growth surprises on the upside, to be a bit more activist than it has been in the past few years.” However, Saunders also said that Britain’s departure from the European Union meant the economy would probably grow more slowly in the coming years than it otherwise would have done. “Maybe it might grow five percentage points less over the next 15 years. That’s a fairly sizeable economic loss if that’s the case. But that’s over a long period of time,” he said.

(Reporting by William Schomberg, editing by David Milliken)
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