BOE’s Tenreyro: More gradual pace of tightening reduces risk of overshooting

Bank of England (BOE) policymaker Silvana Tenreyro is testifying on the bank’s Monetary Policy Report (MPR) before Parliament's Treasury Committee on Wednesday.

Key quotes

Even without rate increase in August, rates were sufficient to return inflation to target over medium term.

I saw case for raising rates further until there was clear data that we had done enough.

Risk that very high headline rate of inflation could feed wage-price dynamics.

More gradual pace of tightening reduces risk of overshooting.

We should be going slowly when there is a lot of uncertainty.

I will consider further rate rises until we have clear evidence of impact on inflation.

Short-term inflation expectations have very little predictive power.

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