MNI BRIEF: BOE MPC Newcomer Greene Sees Inflation Persisting

Megan Greene, set to join the Bank of England's Monetary Policy Committee next month, has warned against "stop-start" monetary policy whilst highlighting the risk of higher inflation persisting in evidence to the Treasury Select Committee.

Greene, facing MPs in an appointment hearing, said that while inflation would come down from double digits swiftly it would be tougher to get it back to the 2% target and she cited structural weaknesses in the UK, with Brexit fueling low productivity growth.

She said that a key lesson of the 1970s was to focus on price stability adding that "If you engage in stop-start monetary policy you may end up having to tighten even more and generating an even worse recession" and "inflation expectations can't be allowed to become de-anchored."

Greene declined to comment directly on which way she would vote, saying she had "hardly been in the building" yet adding though that the Bank "needs to lean against" persistent inflation drivers.