BOE's Tenreyro Sounds Optimistic Note on U.K. Productivity Woe

  • Official says growth may pick up quicker than BOE expects
  • Says Brexit uncertainty is weighing on U.K. investment

Silvana Tenreyro, member of the monetary policy committee at the Bank of England

Photographer: Luke MacGregor/Bloomberg
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The U.K.’s stubbornly weak productivity growth may pick up quicker than currently expected, which would have implications for the pace of interest-rate increases, according to Bank of England policy maker Silvana Tenreyro.

In a speech in London on Monday, Tenreyro offered an optimistic view of the long-term outlook for productivity, saying U.K. companies have all the fundamentals required to be at the “technological frontier.” That gives them scope to catch up with their international peers, who have seen substantially quicker gains in recent years.