Central Banks
BOE’s Greene Says Strong Consumer Could Renew UK Inflation
- Says prices moving in right direction, strong spending a risk
- Greene believes neutral rate of interest in the UK has risen
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A consumption-driven recovery in the UK could set off a renewed bout of inflation, but more interest rate cuts are likely as prices are “moving in the right direction,” Bank of England policymaker Megan Greene said.
Greene, one of four external members of the BOE’s nine-member Monetary Policy Committee, said she was watching closely for signs that UK companies will raise prices as the economy gathers steam. A robust consumer could be the trigger, she said.