Bank of England's Greene: Inflation Impact from Iran War May Not Be Temporary

Bank of England Monetary Policy Committee member Greene stated at a Financial Times event on May 18 that the central bank should not assume the inflationary impact of the Iran war will be temporary. According to Jin10, Greene remarked, "This is the third negative supply shock we've experienced in five years. We really need to be concerned about the mechanisms of wage and price formation." She added, "Traditionally, you would ignore negative supply shocks, but I think that view is actually outdated when shocks occur consecutively, and we should no longer overlook them." In April, Greene voted with most of her colleagues on the Bank of England's Monetary Policy Committee to keep interest rates unchanged, but she indicated that a rate hike might be necessary at the upcoming meeting.