U.S. Markets

BoE's Tenreyro sees small chance of no-deal Brexit rate rise

LONDON (Reuters) - Bank of England rate-setter Silvana Tenreyro said on Wednesday that there was a risk interest rates could need to rise after a no-deal Brexit, though a cut although was more likely.

Asked if the BoE should simplify its message to say it would probably cut rates if Britain leaves the European Union without a transition deal, Tenreyro said: “I wish it was that simple.”

“While I think it is more likely that we would cut ... it’s still possible that if there is a depreciation of sterling, if tariffs increase or non-tariff barriers increase in a way that we see higher prices ... we might need to tighten monetary policy,” she said after a speech at Birkbeck, University of London.

Reporting by Andy Bruce, editing by David Milliken