Comments by BOE MPC member, Silvana Tenreyro
- Already seeing indications of a sharp recovery in purchases that were restricted by business closures
- Believes that recovery will be interrupted by continued risk aversion and voluntary social distancing in some sectors
Tenreyro also points to disinflationary pressures likely to stay for some time and that her personal view is that she remains ready to vote for further action to ensure inflation returns to its target and that economic objectives are met.
At least for now, they can take heart in the mild rebound in the June CPI report but it is still far from encouraging and nowhere suggestive of a consistent rise towards 2%.
That said, the BOE will still adopt a more wait-and-see approach for now surely.
