Bank of England's Megan Greene Stresses Delay in UK Interest Rate Cuts Due to US Inflation Worries - Business Coverage
Thursday, 11 April 2024, 06:49
Bank of England's Megan Greene on UK Interest Rates and US Inflation
Bank of England policymaker Megan Greene argues that UK interest rate cuts are unlikely in the near future, citing more pressing inflation concerns in the US. The latest market data indicates a delay in UK rate adjustments compared to the US.
Market Expectations and Wage Growth
- Market pricing suggests UK rate cuts are fully priced in by August, ahead of US adjustments.
- Higher inflation expectations have resulted in increased pay growth in the UK, surpassing levels in the US.
Sticky wage growth remains a crucial factor in UK services inflation, requiring further moderation to align with target levels.
UK services inflation continues to outpace US figures, presenting a challenge in achieving sustainable inflation targets.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.