BoE monetary policymaker Megan Greene expressed cautious optimism in a recent interview with Bloomberg TV, acknowledging the positive signs of declining inflation in the UK.
Greene noted that the recent data, which showed a drop in inflation to 4.6% and a weakening in wage growth, was indeed “good news.” However, she voiced concerns about the persistence of inflation, particularly in the services component of CPI. Besides, her apprehension primarily stems from the still elevated wage growth, which she described as “incredibly high.”
She emphasized the challenges posed by this situation, stating, “If we have an economy with fairly low productivity growth and really high wage growth, it’s going to be hard to hit the (2% inflation) target.”
