Referring to Russia invasion of Ukraine, BoE MPC member Silvana Tenreyro said yesterday, “recent developments will intensify the terms of trade shock that we were already experiencing, so will push up inflation and have a negative impact on activity. How exactly? That’s the job we will start next week.”
Tenreyro added that she had been surprised by the scale of wages growth. However, “when you are talking about spirals, you are talking about explosive dynamics which we haven’t seen yet. If anything, we are just starting the first round, so how can you talk about second round (effects)” she said.
