Bank of England interest-rate setter Silvana Tenreyro said on Monday that she expected borrowing costs to rise gradually but the timing of when rates would start to go up was an open question.

Tenreyro, who voted last month to keep rates on hold, said in a speech that the inflationary impact of the fall in sterling after the 2016 Brexit vote was probably fading more quickly than the BoE had expected.

But the sharp fall in unemployment would push up wages.

“With falling imported inflation offset by a gradual pick-up in domestic costs, I judge that conditional on the outlook I have just described, a gradual tightening in monetary policy will be necessary over the next three years,” Tenreyro said.

“While I anticipate that a few rate rises will be needed, the timing of those rate rises is an open question.”

Tenreyro said she expected that much of the weakness seen in Britain’s economy in early 2018 would prove to be erratic but she said it did raise the possibility of some underlying weakness in domestic demand.

Summing up her position at the BoE's policy meeting in May, she said she believed the costs of waiting a short period for more information about the economy were small.

"And because unusually, we are likely to get a significantly clearer picture of the underlying strength of domestic demand quite soon, there were benefits to leaving policy unchanged," Tenreyro said.

MyFXspot.com is an independent macroeconomic consultancy with thousands of subscribers all over the world. We provide fundamental research to help our clients make better investing decisions. Our subscribers should expect to get access to:

1Trading ideas (entry, take profit, stop loss)

Forex: EURUSD, GBPUSD, USDJPY, USDCAD, AUDUSD, NZDUSD, EURGBP, EURJPY, EURCAD, GBPJPY, AUDNZD, AUDJPY

Precious metals: GOLD, SILVER

Stocks: S&P 500, DAX, SHANGHAI COMPOSITE

Commodities: WTI OIL

This is a sample publication:

* only forex and precious metals - position size suggested for a USD 10,000 trading account in mini lots. You can calculate your position size as follows: (your account size in USD / 10,000 USD) * (our position size). It is recommended to round the result down. For example, if the result was 2.671, your position size should be 2 mini lots.

2Investment Clock - great quantitative tool for investors

Different asset classes sectors tend to perform better than others at different phases of the economic cycle. We estimate current phase of the economic cycle and the Investment Clock shows which asset classes have historically outperformed in current phase of the economic cycle according to our research.

3Essential market news, technical and fundamental analysis, reviews of central bank decisions

We provide you regular commentaries on important economic and market issues and events, previews and forecasts of forthcoming data releases resulting from our knowledge, experience and quantitative tools.

4Last but not least

We describe fundamental factors, discuss recent changes in trends, resort to numerous quantitative tools and much more. You are able to take a close look at how we come to our conclusions and decide whether you share our current opinion regarding the market, but at the end of the day, it is you who decides what to do with your capital. That is why we strongly recommend you to conduct your own research and always rely on common sense – nobody knows what might work out for you just as you do.

Monthly

Subscription

$49.90

 
You can cancel at any time
CONTINUE

Quarterly

Subscription

$119.70

per month: $39.90
You can cancel at any time
CONTINUE

Annual

Subscription

$238.80

per month: $19.90
You can cancel at any time
CONTINUE

VAT tax will be added for EU individuals.

Cron Job Starts