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Wait and see impact of August rate hike - BoE's Tenreyro

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By Reuters
Wait and see impact of August rate hike - BoE's Tenreyro
Pedestrians shelter under umbrellas in front of the Royal Exchange and the Bank of England, in London, Britain August 16, 2018. REUTERS/ Hannah McKay   -   Copyright  HANNAH MCKAY(Reuters)

LONDON (Reuters) – Bank of England policymaker Silvana Tenreyro said on Tuesday that the central bank should wait to see the impact of an interest rate increase it made in August before deciding on its next move.

“As of now, I think it is prudent to let the effect of the last move sink in and continue monitoring the evolution of the economy,” Tenreyro said in an annual report to the Treasury Committee in Britain’s parliament.

She said her central forecast was for inflation in Britain to remain slightly above the BoE’s 2 percent target but there were downside risks, chiefly that services inflation would stay soft and labour costs would be weaker than expected.

(Reporting by David Milliken; Writing by William Schomberg; editing by Michael Holden)