BOE’s Mann Says Climate Change Poses Persistent Inflation Threat
- Both climate transition and climate change itself create risks
- Central banks need to ‘raise awareness of climate issues’
Catherine Mann
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Both climate change and the path to net zero will cause higher, more persistent and more volatile inflation that central banks will have to respond to, Bank of England rate setter Catherine Mann said.
Speaking at the University of Oxford, Mann said monetary policymakers will face challenges either from the transition to net zero as carbon pricing leads to “persistence in inflation” or from the “physical impacts” of climate change.