Bank of England policymaker Megan Greene signalled that pressure on UK monetary policy to tighten is increasing as the conflict involving Iran continues. Speaking in prepared remarks to the University of Derby's business school on Tuesday, Greene said that a faster move in interest rates might be needed to keep inflation expectations under control.
Greene, regarded as one of the more hawkish voices on the Bank's policy-setting committee, told the audience that the timing of action matters as much as the magnitude of any rate increase. In the text of her speech she said: "I think the case for hiking rates grows as the conflict wears on and believe a tightening in monetary policy over the next few weeks or months may be necessary."
The Bank of England's Monetary Policy Committee is scheduled to announce its next policy decision on June 18. In April, only the Bank's chief economist Huw Pill voted for an immediate rate increase. Several other members, including Greene, indicated at that time they would consider a move if the war persisted.
Greene's remarks linked the prospect of tighter policy to ongoing geopolitical developments. Reports mentioned alongside her comments suggest the United States and Iran may be edging closer to an agreement, but the speech noted that a definitive, permanent solution appears unlikely. The conflict was described as now being in its fourth month.
Greene also drew attention to damage to energy infrastructure in the region, saying repairs will take time and that the restoration of full oil and gas flows will therefore be delayed. That condition supports her view that elevated inflationary pressure could persist unless addressed.
Her position aligns with the view that both the speed and timing of any rate hikes are critical - not just how large those hikes might be. With the MPC's June 18 decision approaching and prior votes showing limited immediate support for a hike, Greene's comments signal that the debate among policymakers remains active and contingent on how the conflict and energy supply situation evolve.
Contextual note: The details above reflect only the statements and facts presented in the remarks and related reporting; no additional claims or outside analysis have been introduced.