Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details
No rush for Bank of England to raise rates after a Brexit deal: Tenreyro
No rush for Bank of England to raise rates after a Brexit deal: Tenreyro
LONDON (Reuters) - The Bank of England probably has more time than it previously thought before it will need to raise interest rates, assuming Britain can leave the European Union with a transition deal, BoE interest-rate setter Silvana Tenreyro said on Wednesday.
The pound would probably rise after a Brexit deal, Tenreyro said. Combined with the ongoing slowdown in the world economy this would probably offset the inflation pressure building in Britain's labor market and allow the BoE to keep rates on hold at their current level of 0.75% for a while.
"Coupled with signs of a weaker global outlook, recent developments likely lengthen the period until there is a sufficient pick-up in inflationary pressures for me to vote to raise Bank Rate," Tenreyro said in a speech. "I do not currently anticipate such a pick-up in the next few months."
Tenreyro said a "small amount of policy tightening" would be needed over the next three years in the event of a Brexit deal.
The BoE has long advised investors that rates are likely to go up in a gradual and limited way, as long as a Brexit deal is done.
In the event that Britain leaves the EU without a deal, it was more likely than not that the BoE would need to ease monetary policy to soften the shock, she said, repeating comments she made in March.
But this was "by no means certain," she added.
The fall in yields on British debt reflected worries about the world economy and not just Brexit, she said.
Many investors are betting that the BoE's next rate move will be a cut, not an increase, given their fear that a no-deal Brexit looks more likely.
Both contenders to replace Theresa May as the next prime minister have said they are prepared to take the country out of the EU without a deal if necessary.
BoE Governor Mark Carney said last week that the risks of a no-deal Brexit and an escalation of global trade tensions were rising, adding to bets in markets on a BoE rate cut.
Related Articles
Republican lawmaker says public transit dispute holding up U.S. infrastructure bill
By Reuters - Jul 25, 2021
10
By Susan Cornwell WASHINGTON (Reuters) -The lead U.S. Republican negotiator on an infrastructure plan said on Sunday he hoped for a detailed agreement sometime this week despite a...
Israel Fin Min sees 5.1% economic growth, 7% budget deficit in 2021
By Reuters - Jul 25, 2021
JERUSALEM (Reuters) - Israel's Finance Ministry said on Sunday the 2021-2022 budget will be based on a 5.1% economic growth estimate this year and a 4.7% forecast next year. The...
Cars, pavements washed away as Belgian town hit by worst floods in decades
By Reuters - Jul 25, 2021
BRUSSELS (Reuters) - The southern Belgian town of Dinant was hit by the heaviest floods in decades on Saturday after a two-hour thunderstorm turned streets into torrential streams...
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for reviewDisclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.