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MNI BRIEF: BOE Tenreryro: Negative Rates Effective Econ Boost

LONDON (MNI)

Evidence shows "negative rates have been very effective in boosting the economy," Bank of England Monetary Policy Committee Silvana Tenreyro said Monday, reaffirming her sympathy for sub-zero rates.

According to Tenreyro, NIRP should work through both the wealth and FX channels and research has downplayed their impact on banks' profitability. On prices, she said there are no signs of pressure from domestically generated inflation, at least in the near-term, with the low interest rate environment set to persist and the likelihood of subdued wage inflation.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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