Megan Greene argues UK growth warrants further interest rate tightening
What happened
Megan Greene, an external member of the Bank of England's Monetary Policy Committee, argued that stronger-than-expected UK economic growth reinforces her view that monetary policy is not restrictive enough to contain inflation. Speaking at an event hosted by the Atlantic Council, she cited the IMF’s upgrade of its 2026 UK growth forecast and the resilience of the UK labor market as evidence.
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Why it matters
Greene stated that the current 3.75% Bank Rate is insufficient given persistent inflation, with the IMF forecasting UK inflation above the Bank of England’s 2% target in 2026 and 2027. Her comments suggest that economic resilience leaves room for further interest rate tightening rather than demonstrating that existing policy is adequate.
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Who's involved
- Megan GreeneExternal member of the Bank of England's Monetary Policy Committee
- Atlantic CouncilHosted the event where Megan Greene spoke
- Bank of EnglandCentral bank of the United Kingdom whose policy is under discussion
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Bank of EnglandSpeculative
The Bank of England might face policy pressure for further interest rate tightening due to Megan Greene's hawkish stance.
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The entities involved
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Megan Greene
American economist
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Atlantic Council
American think tank