Stretched government budgets could slow full COVID recovery - BoE's Tenreyro

FILE PHOTO: A security officer stands outside the Bank of England, as the spread of the coronavirus disease (COVID-19) continues, in London, Britain, March 23, 2020. REUTERS/Toby Melville/File Photo

LONDON (Reuters) - Bank of England interest rate-setter Silvana Tenreyro said the stretched budgets of governments around the world could hinder the full recovery of the global economy from the COVID-19 pandemic.

In an online speech to the British Chamber of Commerce in Argentina on Wednesday, Tenreyro also said shifts towards working from home and online shopping might bring medium-term productivity gains but there would be a short-term shock for many people.

Writing by William Schomberg, editing by David Milliken