BoE Greene Urges Proactive Tightening to Curb Wages
Bank of England official Megan Greene argues that proactive monetary tightening is necessary. She warns that persistent wage growth and firm pricing power threaten the two percent inflation target.
Insights:
Bank of England policymaker Megan Greene said on Wednesday that policymakers must proactively tighten monetary policy to curb persistent wage growth in the United Kingdom. The central bank official warned that pay pressures risk getting stuck at elevated levels as companies pass labor costs on to consumers. Greene's comments arrive as the BoE weighs how to anchor inflation around its 2% target amidst tightening labor markets.
