Interest rates are more likely to be cut than raised if the UK leaves the EU without a deal, according to Bank of England rate-setter Silvana Tenreyro. The Bank has already said a fall in sterling and new trade tariffs would raise inflation and cause a rate rise, but other rate-setters have already suggested rates may fall. The Bank of England is seen in the City of London, Britain, February 7, 2019. Tenreyo also said there may also be some tightening if the UK’s exit was smooth and added that she detected “mildly improving” economic trends in the longer term. She said: “The economy is still growing at around 2% per year on average – which is above our target for this year.
Interest rates are more likely to be cut than raised if the UK leaves the EU without a deal, according to Bank of England rate-setter Silvana Tenreyro. The Bank has already said a fall in sterling and new trade tariffs would raise inflation and cause a rate rise, but other rate-setters have already suggested rates may fall. Tenreyo also said there may also be some tightening if the UK’s exit was smooth and added that she detected “mildly improving” economic trends in the longer term. She said: “The economy is still growing at around 2% per year on average – which is above our target for this year.