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MNI BRIEF: BOE's Greene-Further Soft Data For Considering Cuts

(MNI) London

BOE MPC member Megan Greene says she needs fresh evidence that inflation persisentence is not entrenched to even consider a rate cut.

Bank of England Monetary Policy Committee member Megan Greene said on Thursday that more evidence that inflation persistence is not entrenched is needed to justify easing.

Greene, who switched from backing a hike to the no change camp in February’s policy vote, said in a speech at Fitch that UK services inflation was more elevated than in the eurozone or the U.S. and cited negative effects from the terms of trade shock and its tight labour market. She saw encouraging signs in the slow loosening of the labour market but said that pay growth stands out by international standards. (See MNI BOE WATCH: BOE Holds, Hiking Bias Removed From Statement)

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Bank of England Monetary Policy Committee member Megan Greene said on Thursday that more evidence that inflation persistence is not entrenched is needed to justify easing.

Greene, who switched from backing a hike to the no change camp in February’s policy vote, said in a speech at Fitch that UK services inflation was more elevated than in the eurozone or the U.S. and cited negative effects from the terms of trade shock and its tight labour market. She saw encouraging signs in the slow loosening of the labour market but said that pay growth stands out by international standards. (See MNI BOE WATCH: BOE Holds, Hiking Bias Removed From Statement)

Keep reading...Show less