BoE’s Greene warns waiting for second-round inflation effects would be too late
GBP/USD — All Desk Targets
| Firm | Stance | YE 2026 |
|---|---|---|
Barclays | Bullish | 1.4100 |
Goldman Sachs | Bullish | 1.3600 |
UOB | Bullish | 1.3700 |
From the original
Greene’s remarks reinforce the hawkish wing of the MPC and support market expectations of a November hike, which recent reports put at around 84%. Her warning about second-round effects ties directly to the energy shock from the Iran war: if higher oil and diesel costs feed into
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4 itemsBoE's Greene: Worth waiting before deciding on rate hikes
The desk believes the Bank of England (BoE) is likely to adopt a cautious approach regarding interest rate hikes, particularly in light of geopolitical tensions stemming from the US-Iran conflict. Per the full note [source], BoE's Greene has indicated that while inflation risks are skewed to the upside, the current sluggish economy and loose labor market may mitigate the second-round effects of energy shocks. The market currently prices in a 42% chance of a rate hike in June, which suggests that upcoming economic data will be pivotal in shaping expectations ahead of the meeting.
BOE policymaker Greene warns of second-round UK inflation risks, voices concern over wage growth
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