Bank of England’s Greene Challenges Wage Benchmark Before November Meeting

Bank of England Monetary Policy Committee member Megan Greene questioned the bank’s estimate of pay growth consistent with its 2% inflation target, sharpening debate over interest rates before a November decision. The bank’s longer-term estimate puts target-consistent pay growth at about 3.25%. Greene raised concerns about that benchmark and pointed to forward-looking indicators of higher wage growth. Her remarks indicated a preference for tighter monetary policy, but did not establish an explicit call for a rate increase. Bank Rate stands at 3.75%, and UK inflation was 3.1%, above the bank’s target.

Source: TokenPost