The Bank of England will probably have to start cutting interest rates sooner than you think, after raising them sharply in recent months.
Thus the head of monetary policy Silvana Tenreyro. “I expect that the current high level of the Bank Rate will require a more rapid and timely turnaround to avoid a significant undershoot of inflation,” Tenreyro said in the text of a speech he was due to give at the Royal Economic Society in Glasgow.
Tenreyro cast one of two votes to leave borrowing costs unchanged in March, while the majority of his colleagues on the Monetary Policy Committee supported a 25 basis point increase in the interest rate to 4.25%, and opposed rate hike since December.
