Bank of England’s Silvana Tenreyro said today her inclination is towards a rate cut if downside risks emerge, currently the BoE base rate is 0.75%. She added discussing the possibility of stimulus, current asset purchase target is £435 billion with a corporate bonds £10 billion.
Bank of England’s Silvana Tenreyro said today her inclination is towards a rate cut if downside risks emerge, currently the BoE base rate is 0.75%. She added discussing the possibility of stimulus, current asset purchase target is £435 billion with a corporate bonds £10 billion.
BOE’s policy maker Sylvia Tenreyro said today her inclination is towards a rate cut if downside risks emerge. Tenreyro reiterated that risks are tilted to the downside, She expects inflation to stay below the bank’s target.
Tenreyro expects pay growth to be sustained in the early part of 2020 with a very tight UK labour market, but not doesn’t see it tightening further. However she did say it is very hard to think that this is the peak of the labour market
BOE’s Tenreyro also feels we (BoE) will be discussing possibility of stimulus in the coming months. The key input on a rate decision is how uncertainty unwinds Her expectation is that lower uncertainty could boost UK business investment. Whilst for markets this week the immediate concern is the Iranian conflict risk. She cited the future trade relationship between the UK and the EU.
We have seen a weakness in the UK economy over uncertainty, highlighted by the weak PMI and cosntruction output reports, significantly due to Brexit uncertainty. Much of the Brexit cloud is lifting with Boris Johnson’s landslide win. We will see if positive aspects flow over as the BOE hopes.
rofessor Tenreyro has just been named as the next external member of the Monetary Policy Committee (MPC). She will join the MPC on 1 July, replacing Kristin Forbes whose term expires on 30 June 2017. Mark Carney, Governor of the Bank of England, says Tenreyro has important skills in the dynamics of the labour market — an important issue, given Britain is struggling with weak productivity and falling real wages.
Silvana Tenreyro Biography
Term of appointment: 5 July 2017 – 4 July 2020
Silvana Tenreyro is Professor in Economics at the London School of Economics. She obtained her MA and PhD in Economics from Harvard University. Before joining the Bank, she was co-Director and Board member of the Review of Economic Studies and Chair of the Women’s Committee of the Royal Economics Society. She is a Fellow of the British Academy (FBA).
In the past, Silvana worked at the Federal Reserve Bank of Boston and served as external Monetary Policy Committee member for the Central Bank of Mauritius. She has also been Director of the Macroeconomics Programme at the International Growth Centre, Chair of the Women in Economics Committee of the European Economic Association, Member at Large of the European Economic Association, panel member for economic policy and Associate Editor for JEEA, the Journal of Monetary Economics, Economica, and the Economic Journal.
She is a lead academic at the Centre for Macroeconomics and Research Associate at the Centre for Economic Performance and the Centre for Economic Policy Research. Her main research interests are macroeconomics – particularly monetary policy – international economics and macro-development.
Source: Bank of England
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