Bank of England policymaker Megan Greene has argued that stronger-than-anticipated UK economic growth and a robust labor market justify further interest rate hikes. Speaking at the International Monetary Fund meetings in Bangkok, Greene, an external member of the Monetary Policy Committee, stated that the current 3.75% interest rate is insufficient to tackle inflation.
The IMF recently revised its UK growth forecast for the year, raising it to 1.3% from the earlier estimate of 1%. Greene cautioned against depending on financial markets to control inflation and emphasized the need for higher rates to achieve the central bank's targets.
Her remarks highlight a growing debate within the Bank of England over the appropriate monetary policy stance, with some officials advocating for a more aggressive approach to curb rising prices.