BoE's Greene Backs Rate Hike at 3.75% as Iran War Raises Inflation Risks
Updated
Updated · Reuters · Jun 2
BoE's Greene Backs Rate Hike at 3.75% as Iran War Raises Inflation Risks
3 articles · Updated · Reuters · Jun 2
Megan Greene said a Bank Rate increase may be needed within weeks or months if the Iran conflict keeps lifting economy-wide prices, arguing the case for tightening grows the longer the war lasts.
Greene said moving sooner matters as much as the size of any hike, warning that waiting for conclusive evidence of war-driven inflation could come too late to keep expectations anchored to the BoE's 2% target.
Her stance sharpens a split with Governor Andrew Bailey, who has said higher market rates since the war began give the BoE time to assess the shock rather than rush to raise Bank Rate.
Markets reacted modestly: British bond futures hit a session low after her remarks, while gilt yields moved broadly in line with European peers.