The Bank of England should not continue to rely on high bond yields to do its job of taming inflation, Monetary Policy Committee member Megan Greene has said.
“It’s quite dangerous to just assume the markets will do your work for you …. At some point, you need to put your money where your mouth is,” Greene said at a conference in Cape Town hosted by South Africa’s STANLIB Asset Management.
Greene voted in June, July and September for the central bank to raise interest rates by a quarter-point to 4 per cent. Financial markets expect a majority of the BoE’s Monetary Policy Committee to back a rate rise to 4 per cent at their next meeting in early November.
BoE Governor Andrew Bailey has argued that a sharp rise in market borrowing costs and mortgage rates after the start of the US-Iran war has given the BoE time to assess if it needs to raise its own interest rates in response to higher energy prices.
Click here to change your cookie preferences