BoE's Greene: UK's 'more constrained' supply side is leading to 'stickier' inflation than the US

‘More inflationary pressures’

Megan Greene, Bank of England Monetary Policy Committee member, argued UK inflation is “stickier” than that of the US due to the UK supply side being “much more constrained”.

In a speech given at ratings agency Fitch's London headquarters yesterday (15 February), Greene said while inflation was above target in both countries, the issue is of "greater concern" in the UK. UK supply is measured by potential growth and Greene argued the UK has "long lagged behind on this metric". Potential growth in the UK was estimated by the MPC at 1% this year, rising to 1.3% in 2026. Meanwhile, in the US, the Congressional Budget Office estimated that US supply growth would rise from 2% to 2.2% between 2024 and 2026. Productivity Greene explained  UK productivity is e...