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BoE's Tenreyro sees global interest rates staying low

BoE appoints Sarah Breeden in senior financial stability role
BoE appoints Sarah Breeden in senior financial stability role   -   Copyright  Thomson Reuters 2021
By Reuters

LONDON (Reuters) – Bank of England policymaker Silvana Tenreyro said on Tuesday that she expected global financial conditions would continue to support growth, and that the U.S. Federal Reserve would not need to raise interest rates sharply.

“I expect financial conditions to remain quite accommodative for a few years. The Fed is determined not to hike rates any time soon, and not to respond to temporary spikes in prices,” Tenreyro said at a question and answer session hosted by the University of Oxford’s Latin America Centre.

“I wouldn’t expect to see rates going high, certainly not by historic standards,” she said in response to a question about whether growth in Latin America could be derailed by tighter U.S. monetary policy.

(Reporting by David Milliken; editing by Costas Pitas)