BOE’s Tenreyro: We are likely to see disinflationary pressures for some time

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The Bank of England (BOE) policymaker Silvana Tenreyro, in a scheduled speech on Wednesday, talks about the disinflationary pressures and on further monetary policy action.

Key quotes

“Headline inflation will continue to weaken in the near term, given a continuing sizeable impact from lower energy prices, and a negative contribution from the recent cut in VAT.”

“Already seeing indications of a sharp recovery in purchases that were restricted by business closures.”

“Believes that recovery will be interrupted by continued risk aversion and voluntary social distancing in some sectors.”

“Ready to vote for further action as necessary to help the economy.”

Market reaction

GBP/USD is off the highs but adds 0.52% to trade at 1.2612, at the press time.

Broad-based US dollar weakness amid a better market mood is behind the run higher in the cable.

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