BoE's Mann: Climate change inflation is a 'concern' for all central bankers

Increased inflation persistence

Monetary policy makers should be preparing for increased inflation persistence and volatility associated with climate shocks and policies, the Bank of England's Catherine Mann has said.

Mann, who is a member of the Bank's Monetary Policy Committee, told delegates at the Environmental Economics Seminar at the University of Oxford yesterday (13 November) that climate change was becoming a "concern for monetary policymakers, directly within a price stability mandate". "That applies whether the monetary policymaker's remit includes a reference to climate change or not," she said, pointing out supporting government climate change policies is now within the secondary objectives of the Bank of England's remit. Climate change and mitigation policies have the potential to cha...