BARNSLEY, England (Reuters) - The Bank of England would be justified in cutting interest rates if the underlying rate of economic growth remains at its current weak level, even if it does not slow further, BoE policymaker Michael Saunders said on Friday.
“Below potential growth is enough,” Saunders said in a question and answer session after giving a speech to local businesses in Barnsley, northern England.
“If growth is weak for a while, below potential, spare capacity rises and down the road inflation undershoots. Our remit encourages us to steer against that,” he added.
Reporting by David Milliken; editing by Kate Holton