The Bank of England Monetary Policy Committee (MPC) member Megan Greene has warned that the jump in inflation is leaving policymakers in an “uncomfortable place.”
She warned that inflation will sit around 3.5% for the rest of the 2025 and this will keep wage rises and shop prices increasing.
“I worry about the near-term profile for inflation this year, which in my view now resembles more of a ‘plateau’ than a ‘hump’,” she said.
Greene warned the UK economy is “weak” and she said there are concerns consumer spending will continue to be under pressure.
Greene said, “I continue to think the risks remain two-sided but skewed to the downside on growth and to the upside on inflation.
“This is an uncomfortable place to be for a central banker.”
She added, “On the global front, there are a number of key events playing out between now and our next meeting, including the deadline for the pause on so-called ‘reciprocal tariffs’ from the US, the potential passage of a budget in the US and the unfolding of events in the Middle East.
“It’s unlikely that the uncertainty from these events – and subsequent developments – will be resolved any time soon.”
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