UK interest rates are too high and may need cut – Bank of England’s Tenreyro

Policymaker highlights split in rate-setting committee, saying inflation is on track to fall

UK interest rates may need to be cut this year as the pressure on households and businesses from high borrowing costs ripple through the economy, a senior Bank of England policymaker has said.

Silvana Tenreyro, one of the members of the Bank’s rate-setting monetary policy committee, said that inflation in the UK was on track to fall rapidly this year despite concerns from others on the nine-strong panel that it could remain at persistently higher levels.