Monitoring the labour market is key – BoE’s Saunders

Michael Saunders, member of the Bank of England’s MPC

A member of the Bank of England's (BoE) monetary policy committee (MPC) has stressed he will be watching the labour market closely over the next few months, with the possibility that he will revise his theory of a "lower equilibrium jobless rate".

Speaking in London today (January 13), Michael Saunders acknowledged the UK's jobless rate is currently at 4.8%, slightly below the MPC's estimate of the equilibrium rate of 5%. He said it is likely to stay below the equilibrium this year, contrary to