BoE’s Greene Warns of Second-Round Inflation Effects in UK

Greene's focus on second-round effects and wage growth reframes the UK inflation debate around domestic persistence rather than external shocks, which matters because it implies the MPC cannot rely on imported disinflation alone. Her concern signals a possible reluctance to ease policy quickly, even as broader inflation cools. The open question is whether other MPC members share her read on wages, since that split will shape how long restrictive policy stays in place.