BOE's Greene Warns on Inflation Risks and Market Reliance, Backing Further Tightening

Bank of England policymaker Megan Greene warned that central banks cannot rely indefinitely on rising bond yields and mortgage borrowing costs to tighten monetary conditions. Speaking at a conference in Cape Town, Greene stressed that direct policy action is necessary if inflation persists, pointing to early indicators that UK wages could expand by approximately 3.5% next year. Greene previously voted for 25-basis-point rate increases in June, July, and September to bring the Bank Rate to 4%, where she was one of three dissenters seeking a hike in September. Financial markets currently price an 84% probability of a 25-basis-point increase in November.