- Analytics
- News and Tools
- Market News
- BoE’s Tenreyro: BoE might need to cut rates sooner than thought
BoE’s Tenreyro: BoE might need to cut rates sooner than thought
Bank of England (BoE) interest rate-setter Silvana Tenreyro said on Tuesday, “I expect that the high current level of bank rate will require an earlier and faster reversal, to avoid a significant inflation undershoot.”
Additional quotes
“With bank rate moving further into restrictive territory, I think a looser stance is needed to meet the inflation target.”
“Looser stance can be achieved either through lower bank rate today or through lower bank rate in future.”
“In the absence of further counterbalancing cost-push shocks, I judge inflation is likely to fall well below target.”
“Cannot be complacent about the ability of QE to substitute for an interest-rate policy if, when inflation falls, we find ourselves still in a world of low equilibrium interest rates
“High-frequency private-sector regular pay growth has fallen back sharply in recent months.”
“Terms of trade shock to the UK has unwound faster than I expected.”
“I expect lower price inertia from second-round effects via wage growth, given a lower rate of headline inflation.”
“We will see less of a drag on demand and the output gap from further falls in real income.”
Market reaction
Despite the dovish remarks from the BoE policymaker, GBP/USD is holding its latest uptick near 1.2500, adding 0.73% on the day.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
