BoE's Greene Cites IMF Growth Upgrade to Urge Further Interest Rate Hikes

Bank of England MPC member Megan Greene argued that the current 3.75% Bank Rate is insufficiently restrictive, urging further interest rate hikes. Speaking at an Atlantic Council event, Greene cited the IMF's upgraded 2026 UK GDP growth forecast from 1.0% to 1.3% and projected inflation of 3.3% in 2026 and 2.8% in 2027 as evidence that economic resilience allows room for tightening. Greene earlier cautioned that waiting for second-round inflation effects would be too late, expressing concern over 3.5% wage growth. Markets currently price an 84% probability of a rate hike at the BoE's November meeting.