LONDON New Bank of England policymaker Michael Saunders said in an interview published on Tuesday that the central bank still had scope to boost the economy further if needed, but had to be alert to adverse side-effects from loose monetary policy.
"If we thought the adverse side effects of monetary policy easing outweighed the potential boost, then our willingness to use the tool of easing, even in a time the economy was sluggish, would be much less," he told the Financial Times.
"I do not think we are at that tipping point, but that is something we have to be constantly on the alert for," he added.
In extracts from the interview published earlier on Tuesday, Saunders said he expected the economy would slow less than most analysts had forecast, and that higher unemployment was one possible trigger for him to back a rate rise.
(Reporting by Andy Bruce and David Milliken)