Bank of England (BoE) Monetary Policy Committee member Megan Greene stated that inflation risks are skewed entirely to the upside, emphasizing the need for the central bank to wait and observe developments in the Middle East, particularly the US-Iran war, before making any monetary policy adjustments [1]. Greene noted that the sluggish economy and a loose labour market should help limit second-round effects from any energy shock [1].
Despite Greene’s comments, there was no immediate significant reaction in the British Pound (GBP). The lack of market movement was attributed to the absence of meaningful guidance on the BoE’s monetary policy outlook [1]. At the time of reporting, GBP/USD was down 0.17% near 1.3610 but had recovered most of its earlier losses [1].
No forward-looking statements or analyst opinions beyond Greene’s remarks were provided in the source article [1].
CONCLUSION
BoE’s Greene highlighted upside inflation risks and advocated for a cautious approach to monetary policy amid Middle East uncertainties. The market showed little immediate reaction, reflecting limited new guidance on the BoE’s policy direction.