Bank of England’s Greene Challenges Wage Benchmark Before November Meeting

Bank of England Monetary Policy Committee member Megan Greene questioned the bank’s estimate of pay growth consistent with its 2% inflation target, sharpening debate over interest rates before a November decision.

The bank’s longer-term estimate puts target-consistent pay growth at about 3.25%. Greene raised concerns about that benchmark and pointed to forward-looking indicators of higher wage growth. Her remarks indicated a preference for tighter monetary policy, but did not establish an explicit call for a rate increase.

Bank Rate stands at 3.75%, and UK inflation was 3.1%, above the bank’s target. The pay-growth estimate is part of the policy debate as committee members assess inflation pressure ahead of their next decision.

Bank of England Chief Economist Huw Pill has also emphasized inflation control. Greene’s concerns add another view to that debate, though one member’s position does not determine the committee’s decision.

Market pricing has indicated a low likelihood of a rate cut and some expectation of an increase. The Monetary Policy Committee’s next rate decision is due in November.