'Dangerous' for BoE to rely on high bond yields to control inflation, MPC's Greene says
- MPC member Megan Greene slams central bank reliance on bond yields to curb inflation
- Greene demands the bank 'put its money where its mouth is' instead of waiting on market forces
- Internal divide deepens as Governor Bailey tries to stall rate hikes while inflation bites
- Markets bracing for November showdown as pressure builds to hike rates to 4%
Brief Summary
The Bank of England is facing an internal revolt as Monetary Policy Committee member Megan Greene publicly blasted the central bank’s passive approach to inflation. Greene warned that assuming market forces—specifically high bond yields—will handle the heavy lifting of cooling the economy is not just lazy, but dangerous. While Governor Andrew Bailey has been using geopolitical instability as an excuse to kick the can down the road, Greene is pushing for concrete action, having consistently voted for rate hikes throughout the summer.
Why This Matters
When central bankers lose their nerve, your wallet feels the sting. If the Bank of England fails to aggressively manage inflation, it risks a prolonged economic hangover that spills over into global markets, ultimately weakening the purchasing power of your own currency and driving up the cost of imported goods and services. By telegraphing hesitation, the bank invites further market volatility, which makes your mortgage rates, credit card interest, and overall cost of living unpredictable. When they dither, you pay the price.