Monetary policy can do little to affect some drivers of inflation – Silvana Tenreyro

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The Policy Officer of the Bank of England (BOE), Silvana Tenreyro, said Monday that some inflation drivers are expected to remain short-lived, adding that monetary policy can do little to influence them, Reuters reported.

Featured statements

“Since August, we have had a lot of news that has influenced higher short-term inflation in energy prices, an effect that should fade quickly.”

“The Effects of supply chain disruption must also be temporary, but the speed of rotation back to normal is a key uncertainty. “

“The balance of recent economic news is unlikely to have much of an effect on the amount of adjustment required in the next few years.”

“The pressures on internal costs will depend on the evolution of the labor market now that the work leave plan has ended.”

“My political votes will aim to strike a balance between these different effects and risks.”

Market reaction

The comments do not appear to be having a significant impact on the performance of the British pound against its main rivals. At time of writing, the GBP / USD is largely unchanged on the day at 1.3752.

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