Bank of England ‘may need to cut interest rates earlier and faster’

Silvana Tenreyro says there are signs inflation will fall ‘well below’ the Bank of England’s 2% target rate after a sharp decline in global energy prices. Photograph: Bloomberg/Getty Images

The Bank of England may need to cut interest rates earlier and faster as the impact from previous increases drags down the economy and pulls back inflation, one of its senior policymakers has said.

Silvana Tenreyro, a member of the central bank’s rate-setting monetary policy committee (MPC), said there were signs inflation would fall “well below” the central bank’s 2% target rate after a sharp decline in global energy prices.