BOE’s Tenreyro: A looser stance is needed to meet inflation target
(A reminder that Tenreyro has been against the latest rate hikes for a while now)
Looser stance can be achieved through lower bank rate today or in the future
Expects that with current high level of bank rate, it would require an earlier and faster reversal
That is to avoid a significant inflation undershoot
In the absence of further shocks, sees inflation likely falling well below target