Bank of England should not rely on high bond yields to curb inflation, Greene says

Cape Town, South Africa. The Bank of England should not continue to rely on high bond yields to tame inflation, Monetary Policy Committee member Megan Greene said at a conference hosted by South Africa’s STANLIB Asset Management.

Greene warns against relying on markets

“It’s quite dangerous to just assume the markets will do your work for you …. At some point, you need to put your money where your mouth is,” Greene said.

Greene voted in June, July and September for the central bank to raise interest rates by a quarter-point to 4 per cent. Financial markets expect a majority of the Bank of England’s Monetary Policy Committee to support a rise to 4 per cent at its next meeting in early November.

Bailey cites higher borrowing costs

Bank of England Governor Andrew Bailey has argued that a sharp rise in market borrowing costs and mortgage rates after the start of the US-Iran war has given the central bank time to assess whether it needs to raise its own interest rates in response to higher energy prices.