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MNI BRIEF: BOE Tenreyro: Financial Conditions To Stay Loose

LONDON (MNI)

Bank of England Monetary Policy Committee member Silvana Tenreyro downplayed the likelihood of any swift tightening led by the US Federal Reserve in response to higher inflation and said that she expected financial conditions to remain loose. Speaking at an Oxford Latin American Society event Tenreyro said that she shared the Fed's perception that increases in inflation will be "temporary, mostly driven by ... energy prices and base effects" and that policymakers would look through them.

"For now I expect financial conditions to remain accommodative," she said, adding that when any rate hikes did come they would only be "mild".

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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