BoE's Greene says UK economy may still not have recovered from 2022 second round effects; UK data is mixed at the moment, via Bloomberg Interview

BoE official Greene's comments suggest that the UK economy faces lingering challenges from past shocks, with mixed data adding uncertainty.

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BoE's Greene says UK economy may still not have recovered from 2022 second round effects; UK data is mixed at the moment, via Bloomberg Interview

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  • Firms expectations not moved as much as households.
  • Rate hike depends on the duration of the war.
  • Households are more protected vs firms given the Ofgem caps.
  • Supply shocks mean households are sensitive.
  • QT is running in the background. 
Context

His emphasis on the dependency of rate hikes on geopolitical factors, like the ongoing war, indicates a cautious approach to monetary policy. This could weigh on expectations for GBP and influence fixed income markets as investor sentiment adjusts to these insights.

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