Markets News

BoE's Tenreyro inclined to back rate cut if risks emerge

LONDON, Jan 10 (Reuters) - Bank of England policymaker Silvana Tenreyro said she will be inclined to vote for a cut in interest rates, if the economy does not pick up this year as the central bank forecast in November.

The BoE’s forecasts assumed that the Britain would move towards a deep free trade agreement with the EU this year, and that the recent global economic uncertainty quickly unwound.

“The risks to these assumptions are largely to the downside,” Tenreyro said in a speech at the Resolution Foundation think tank in London.

“If uncertainty over the future trading arrangement or subdued global growth continue to weigh on demand, then my inclination is towards voting for a cut in Bank Rate in the near term,” she continued. (Reporting by William Schomberg, writing by David Milliken)