BOE’s Tenreyro: Still to see majority of impact of significant policy tightening already in place

Bank of England (BOE) policymaker Silvana Tenreyro is testifying on the bank’s Monetary Policy Report (MPR) before Parliament's Treasury Committee on Wednesday.

Key quotes

Demand is already weakening.

We are still to see the majority of the impact of the significant policy tightening already in place.

A growing output gap and higher unemployment are likely to weigh heavily on domestic inflationary pressures.

When close to the equilibrium rate, gradual rate rises allow us to react before we tighten too far into contractionary territory.