Economics
BOE’s Tenreyro Says More Stimulus May Be Needed for U.K.
- Negative interest rates should remain an option, she says
- Comments add to debate over suitability of policy for U.K. now
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The Bank of England may need to deliver more stimulus to the U.K. economy, and it’s important for officials to maintain the option of pushing interest rates into negative territory, according to policy maker Silvana Tenreyro.
The remarks add to debate about whether the U.K. central bank needs to add a jolt to the economy as most analysts expect further support coming through faster or increased bond buying. Tenreyro noted the near-term outlook is now worse than when BOE last assessed it in November. Since then, the country announced two more large-scale Covid-19 lockdowns.