BOE Tenreyro from prepared speech

Silvana Tenreyro on the BOE

BOEs Silvana Tenreyro is speaking at the 2021 Macroeconomics and Monetary Policy conference put on by the Federal Reserve Bank of San Francisco.  Her speech is titled: Response to the Covid-19 pandemic: UK and US
experiences. Below are some of the summary points:

  • There remains a number of scenarios that I would anticipate requiring looser policy later this year
  • While the risks of a sharp rise in unemployment is now lower, persistent changes in the way we work and consume could lead to lower demand for some industries
  • Some portion of furloughed workers are likely to become unemployed, with consequent effects on demand
  • Slower rollouts in vaccines of our trading partners may continue to weigh on global economy and demand for UK exports
  • Outside the direct sphere of monetary policy, there are risks of further waves of virus and the particular of vaccine resistant strains
  • The delay reversal of the relaxation of health restrictions or renewed caution from households and businesses would require more monetary support
  • The required loosening in monetary policy would also depend on the response of fiscal policy to any renewed economic weakness
  • The MPC will continue to monitor the health and economic situations and stands ready to take whatever action is necessary.

For the full text of her speech CLICK HERE

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