BoE's Tenreyro: Number of scenarios could require looser policy later this year

Bank of England (BoE) policymaker Silvana Tenreyro said on Friday that a number of scenarios that could require looser policy later this year remain, as reported by Reuters.

Additional takeaways

"Required loosening in monetary policy would also depend on the response of fiscal policy to any renewed economic weakness."

"Important to differentiate between sustained rises in inflation and temporary volatility."

"Greater fiscal boost in the US is likely to lead to a faster rise in the equilibrium rate of interest than in the UK."

"UK fiscal policy is a crucial consideration for the appropriate setting of monetary policy."

"A key influence on the outlook for boe will be the extension of the furlough scheme until the end of the third quarter."

Market reaction

The GBP/USD pair showed no immediate reaction to these comments and was last seen gaining 0.44% on the day at 1.3791.