BoE external member Megan Greene warns that robust UK economic growth requires tighter monetary policy to effectively contain persistent inflationary pressures.
Megan Greene, a member of the Bank of England's Monetary Policy Committee, has signaled that current interest rates may be insufficient to curb inflation given the UK's stronger-than-expected economic performance. By citing the IMF's upward revision of 2026 UK growth projections, Greene suggests that the central bank may need to maintain a more restrictive monetary policy stance, which typically strengthens the British Pound.
She argues that current monetary policy is not restrictive enough to contain inflation, especially in light of stronger-than-anticipated UK economic growth.
She specifically pointed to the IMF's recent upgrade of the 2026 UK growth forecast.
Bank of England policymaker Megan Greene argues that current monetary policy remains insufficiently restrictive to curb inflation. Citing the IMF's improved UK growth outlook, Greene suggests that stronger economic performance necessitates a more hawkish stance to ensure price stability.
Greene believes that stronger-than-expected UK economic growth indicates that current monetary policy is not restrictive enough to bring inflation down to target levels.