Saunders added: “An approach of deferring any change in interest rates until it is clear which Brexit scenario is unfolding may mean that we drift away from the appropriate policy stance and subsequently need to adjust rates rather abruptly.
“In general, I would prefer to be nimble, adjusting policy if it appears necessary to keep the economy on track, and accepting that it may be necessary to change course if the outlook changes significantly.”
Last week, the BoE said interest rates were likely to remain low for a while, as it announced it would be holding the base rate at 0.75 per cent.
Artur Baluszynski, head of research at financial consultant Henderson Rowe, said: “Even if we avoid a no-deal Brexit, the last three years have done enough damage to the UK economy to warrant a ‘lower for longer’ approach to interest rates.
“With a short average fixed-term period on their mortgages, UK households are very sensitive to any hikes in interest rates so unless we experience a currency crisis, the Bank of England should continue to keep the ‘cost of money’ reasonably low.”