Michael Saunders has built a reputation during his time as a member of the Bank of England’s Monetary Policy Committee for being particularly hawkish about tackling inflation.

He was something of a lone voice last summer when he voiced his concern over rising inflation. At that time, he was considered to be akin to the boy who cried wolf given the expectations being promoted around growth.

He was the first to spot the effect that rising energy prices would have on inflation and how emergence from the pandemic may unbalance the economy.

Yesterday, Saunders spoke of his continued concerns over rising inflation and how he believes that the country is not prepared for it to become embedded in the national psyche, a phenomenon that has been absent for close to forty years.

Historically, Inflation is seen as a by-product of wage demands made by militant trade unionists prior to the Thatcher years but the reality of today’s economy is vastly different.

Beyond Currency Market Commentary:

Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.