BoE's Greene warns UK inflation could remain stubborn

(Sharecast News) - Bank of England policymaker Megan Greene warned on Tuesday that UK inflation may not fall as quickly as hoped, cautioning that recent price increases could mark a prolonged plateau rather than a temporary spike. Speaking at the National Institute of Economic and Social Research on Tuesday, Greene said she was concerned about the near-term outlook.

"I worry about the near-term profile for inflation this year, which in my view now resembles more of a 'plateau' than a 'hump'," Greene was quoted by Reuters as saying.

Greene, who voted to keep interest rates unchanged at the BoE's latest Monetary Policy Committee meeting, pointed to mixed economic signals and persistent volatility in inflation data as reasons for holding off on rate cuts.

"Noisy data means that it will take longer for me to take comfort from recent disinflationary trends," she said, adding that maintaining price stability remains her primary concern following a prolonged period of elevated inflation.

She also reaffirmed the Bank's guidance that any reduction in interest rates should follow a "careful and gradual approach," reflecting the uncertainty around the inflation trajectory.

Reporting by Josh White for Sharecast.com.