BOE's Tenreyro: Raising interest rates to counter one-off price rises would be 'self-defeating'

Dhwani Mehta FXStreet

“Raising interest rates to counter higher semi-conductor or energy prices would be 'self-defeating', if one-off,” said Bank of England (BOE) policymaker Silvana Tenreyro in an interview with Business Live on Thursday.

Additional comments

“There is a question about whether price changes are a one-off.”

“We are also seeing temporary supply disruption from post-covid imbalances worldwide.”

“Inflation should be temporary.”

Market reaction

GBP/USD ignores these comments, as it continues to trade near-daily highs amid notable US dollar supply.

The spot is trading at 1.3723, rising by 0.48% on the day, as of writing.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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