Bank official sceptical over rate hike

A BANK of England official warned the economy was slowing and hinted she is not in favour of an early interest rate rise.

Silvana Tenreyro, who sits on the ninestrong monetary policy committee that sets rates, said: ‘We have seen a moderation in recent GDP growth which looks set to continue as we enter the winter months.’

And in a sign that she believes it is too early to raise interest rates, she said more time was needed to see what happened to employment and unemployment when the furlough scheme ended. Around 1m were still on the Government’s job retention scheme when it ended in September.

‘Uncertainty over the effects of the furlough scheme should be resolved over the coming months, which should help paint a clearer picture of the position of the labour market,’ said the economist, in a sign she will not vote for rates to rise when the MPC meets next week.