Bank of England’s Megan Greene Says Inflation Is “Stuck in a Plateau” and That Could Be Tricky
When Megan Greene, a member of the Bank of England’s Monetary Policy Committee, recently voiced her concerns, she made it crystal clear that the rising cost of living is nudging policymakers into a spot that feels more like a “tight squeeze” than a smooth ride.
Inflation Forecast: 3.5 % for the Rest of 2025
Greene cautions that price levels will hover around 3.5 % for the remainder of 2025, which means paychecks and grocery bills will keep climbing. She fears the situation is becoming a plateau rather than a peak—the inflation curve has flattened out, staying steady instead of dropping.
Economic Worries About Growth and Spending
She notes the economy is feeling “weak” and worries that consumers will keep facing tight budgets. “The risks are two‑sided, but they tilt more toward a sluggish growth on one side and higher inflation on the other,” Greene explained.
TL;DR: Growth could stumble, inflation could linger, and that’s uncomfortable for a central banker.
Global Uncertainties Adding to the Stress
- US trade pause on “reciprocal tariffs” is due to end soon.
- Potential US budget announcement could splash more money into the economy.
- Middle East tensions might stir the global market cocktail.
Greene said it’s unlikely these uncertainties will calm down before the next MPC meeting, so the central banker will be juggling a ball of global twists and turns.
Why This Matters for You
Higher prices mean more outlay for everyday goods. Slower growth could shift job prospects. The combination of inflation staying hot and growth taking a back seat paints a picture that’s harder to navigate.
In short, Megan Greene’s warning is a gentle reminder that the coming months might bring more stubborn inflation and a tougher economic landscape ahead.
