Senior policymaker and Monetary Policy Committee member Silvana Tenreyro has suggested that the Bank of England may need to cut interest rates earlier and more rapidly to counter the economic slowdown and lower inflation caused by previous rate increases. Tenreyro noted that global energy prices have fallen sharply, leading to indications that inflation could drop well below the central bank’s 2% target. She also highlighted that previous rate hikes would impact households and businesses with fixed borrowing costs, further contributing to the economic drag and reduced inflation.
Read more at The Guardian
Summary
Article Name
Bank of England May Need to Cut Rates Sooner Due to Economic Drag, Says Senior Policymaker
Description
Senior policymaker and Monetary Policy Committee member Silvana Tenreyro has suggested that the Bank of England may need to cut interest rates earlier and more rapidly to counter the economic slowdown and lower inflation caused by previous rate increases.
Author
Susan Jane
Publisher Name
The Guardian
Publisher Logo
