Bank of England’s Tenreyro sees rates on hold, then falling in 2024
2022.11.11 08:56
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© Reuters. FILE PHOTO: A general view of the Bank of England (BoE) building, the BoE confirmed to raise interest rates to 1.75%, in London, Britain, August 4, 2022. REUTERS/Maja Smiejkowska/File Photo
LONDON (Reuters) – Bank of England monetary policymaker Silvana Tenreyro said on Friday that she expected the central bank would hold its key interest rate at 3% next year before cutting it in 2024, based on the BoE’s latest forecasts for the economy.
“I would expect that Bank Rate held at 3% over 2023 would reduce output further below potential, given the effects of lower real incomes and the lagged impact of the tightening to date,” Tenreyro said in a speech to the Society of Professional Economists in London.
“Policy would then have to loosen, perhaps in 2024, to try to prevent inflation falling below target.”
Tenreyro last week voted for a smaller 25 basis-point increase in Bank Rate while a majority of her colleagues backed a 75 basis-point hike.
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