LONDON, Sept 20 New Bank of England policymaker
Michael Saunders said Britain's economy was likely to slow less
than most economists expected in an interview published on
Tuesday, but added that he was ready to cut interest rates if
unemployment picked up.
Saunders voted to keep interest rates unchanged at a
record-low 0.25 percent last week, in his first Monetary Policy
Committee meeting since joining the BoE from U.S. bank Citi.
"In the near term, the next year or two, I think the economy
will slow, but perhaps not slow as much as the consensus has
been expecting," he said in an interview with the Financial
"This is partly because of the support from loose financial
conditions, partly because of the underlying advantages -
including supply-side flexibility - of the UK economy," he added
in a video clip posted online.
Economists polled by Reuters last week forecast annual
growth would slow to 0.7 percent in 2017 and saw a 35 percent
chance of a recession over the coming year.
(Reporting by Andy Bruce and David Milliken)