Bank of England Monetary Policy Committee member Megan Greene said on Tuesday that there is considerable uncertainty both in the UK and globally. The official added that she continues to believe the risks remain two-sided but skewed to the downside on growth and to the upside on inflation.
While Greene sees price stability as the key priority, she expressed concern about the near-term inflation profile, describing it as more of a “plateau” than a “hump,” with inflation likely to remain around 3.5% through the rest of the year before falling towards the BoE's target in early 2025.
In addition, Greene noted that due to the UK's noisy data, it will take more time for her to be confident in the disinflation trend. She also pointed to upside risks from the Middle East conflict that could lift oil prices and emphasised that, in her opinion, a careful and gradual approach to removing monetary policy restrictiveness continues to be warranted.