Bank of England Official Highlights Labor Market Challenges

Megan Greene, a member of the Bank of England's Monetary Policy Committee, addressed the current state of the British labor market on Tuesday. She noted an increase in slack but emphasized that wage growth remains persistently high, surpassing model predictions.

Inflation and Supply Concerns

Greene reassured that inflation expectations are anchored but voiced concerns over their upward trajectory. She highlighted weak supply as a more pressing issue than demand, pointing to potential rapid trade diversion effects from U.S. tariffs on the UK economy.