BOE’s Greene Warns Lower US Rates Would Fuel UK Inflation

Bank of England rate-setter Megan Greene said interest-rate cuts from the US Federal Reserve would push up UK inflation and force the British central bank to slow its own policy easing.

Greene warned on Friday that the BOE may have to react to the inflation risk posed by the possibility of UK and US monetary policy diverging in 2026. She said upward pressure on inflation from looser financial conditions would outweigh the impact from a stronger sterling reducing import costs.