BoE policymaker Megan Greene signaled that while inflation risks are rising, there is no immediate case for further tightening. At an even today, she said she “wasn’t tempted to hike” at the latest meeting, noting that higher inflation expectations increase risks but do not necessarily imply a sustained inflation cycle.
Greene emphasized that second-round effects remain uncertain. With the labor market weaker than during the 2022 inflation surge, the likelihood of strong wage-driven inflation appears lower. She also pointed to recent PMI data showing rising input costs, but cautioned that these indicators signal risk rather than a guaranteed outcome.
Despite this, Greene underscored that her primary concern is inflation rather than growth. She warned that energy prices are unlikely to fall back quickly due to damage to Gulf infrastructure, while food prices are expected to stay elevated.
