Bank of England faces fine balance when setting rates -Tenreyro

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LONDON (Reuters) – The Bank of England will face a tricky balancing act when it considers future interest rate rises, because of the hit to real incomes being dealt by surging inflation, BoE policymaker Silvana Tenreyro said on Wednesday.

“Looking ahead, we do face a very fine balance … because aggregate demand will be depressed,” Tenreyro said at a panel discussion hosted by Milan’s Bocconi University.

“Workers now will find themselves in a very difficult situation. They will face very stark choices and their real incomes will suffer,” she added.