Bank of England external member Greene cautioned that it is risky to expect financial markets to carry out the central bank's duties, according to FX Street. He emphasized the importance of the BoE’s active role in managing economic conditions rather than deferring to market forces.
Greene also highlighted that UK wage growth is projected to reach about 3.5% next year, signaling persistent inflationary pressures. He has consistently supported interest rate hikes, voting for increases at each of the last three BoE meetings, FX Street reported.
For Japanese investors, these developments underscore the potential for continued BoE tightening, which could influence currency and equity market volatility across global markets, including FX pairs involving the yen.