Interest rate rise unlikely before Christmas, says Bank policymaker

Silvana Tenreyro predicts spike in prices in next few months will probably prove to be short-lived

An interest rate rise before Christmas is unlikely despite rising energy prices and supply shortages that are expected to push inflation towards 5%, according to the Bank of England policymaker Silvana Tenreyro.

Setting herself against colleagues Michael Saunders and the governor, Andrew Bailey, who have warned in recent weeks that inflationary pressures could warrant a rapid response by the central bank, Tenreyro said it was unclear whether a rise in the cost of borrowing before Christmas would control the escalating price of imported goods.