Green urged the Bank of England not to rely on bond yields — Cyprus Mail

In Cape Town, South Africa, Bank of England Monetary Policy Committee member Megan Green said that the regulator should not continue to rely on high bond yields to curb inflation. This was reported by Cyprus Mail.

Warning over market rates

According to Green, it is dangerous simply to assume that markets will do the central bank’s job. She added that at some point the regulator must back up its position with action.

Green spoke at a conference in Cape Town organized by South African company STANLIB Asset Management.

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Vote to raise the rate

In June, July and September, Green voted to raise the Bank of England’s interest rate by 0.25 percentage points, to 4%. Financial markets expect that at the next meeting in early November, a majority of Monetary Policy Committee members will support raising the rate to that level.

Bank of England Governor Andrew Bailey previously said that the sharp rise in the cost of market borrowing and mortgage rates after the start of the war between the United States and Iran had given the regulator time to assess whether it needed to raise its own rates in response to higher energy prices.