{"id":56555,"date":"2025-11-27T13:08:30","date_gmt":"2025-11-27T17:08:30","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/boes-greene-warns-of-market-risks-amidst-persistent-inflation-and-weak-consumption\/56555\/"},"modified":"2025-11-27T13:08:30","modified_gmt":"2025-11-27T17:08:30","slug":"boes-greene-warns-of-market-risks-amidst-persistent-inflation-and-weak-consumption","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/boes-greene-warns-of-market-risks-amidst-persistent-inflation-and-weak-consumption\/56555\/","title":{"rendered":"BoE&#8217;s Greene Warns of Market Risks Amidst Persistent Inflation and Weak Consumption"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li>Bank of England (BoE) Monetary Policy Committee member Megan Greene stated that the <strong>most salient global risk stems from financial markets<\/strong> and emphasized that policy &quot;must bear down if expectations are elevated&quot; to combat persistent inflation.<\/li>\n<li>Greene highlighted that while UK inflation has &quot;stabilized,&quot; <strong>business CPI expectations are rising and elevated<\/strong>, with inflation outcomes actively feeding into these expectations.<\/li>\n<li>Preliminary results from the BoE Agents&#39; Survey indicate <strong>pay settlements of around 3.5%<\/strong>, suggesting a potential upward shift in wage-setting behavior, despite some encouraging signs in wage growth and services inflation.<\/li>\n<li>In the U.S., <strong>layoff notices surged in October to 39,006<\/strong>, marking the second-highest level since the 2020 crisis and a 160% increase in just two months, signaling a recessionary pace.<\/li>\n<li>America&#39;s homeowner population has <em>stopped growing<\/em> for the first time in nearly a decade, according to Redfin, reflecting challenges from rising home prices, high mortgage rates, and economic uncertainty.<\/li>\n<\/ul>\n<p>Bank of England (BoE) Monetary Policy Committee member Megan Greene has issued a stark warning regarding the global economic landscape, identifying <strong>financial markets as the most significant global risk<\/strong>. Speaking on the current economic climate, Greene underscored the necessity for monetary policy to &quot;bear down&quot; if inflation expectations become elevated, signaling a continued hawkish stance.<\/p>\n<p>Greene noted that while UK inflation has &quot;stabilized,&quot; there is a significant concern around &quot;second-round effects&quot; feeding into price pressures. Business CPI expectations are reportedly rising and remain elevated, with current inflation outcomes directly influencing these expectations. She also highlighted that CPI expectations are &quot;at the top of the bands we can explain.&quot;<\/p>\n<p>On the labor front, Greene indicated that vacancies have stabilized, but consumption remains weak. Despite some &quot;encouraging&quot; signs in services inflation coming down and evidence on wage growth, preliminary results from the BoE Agents&#39; Survey suggest that pay settlements are averaging around <strong>3.5% for next year<\/strong>. This figure is higher than what is consistent with the BoE&#39;s 2% inflation target and may be attributed to an upward shift in wage-setting behavior. Greene also observed that &quot;slack has opened up in the labor market and the economy,&quot; and expects this slack to increase, aligning with a &quot;benign&quot; BoE projection.<\/p>\n<p>Beyond the UK, the U.S. labor market is showing signs of significant strain. <strong>Layoff notices surged to 39,006 in October<\/strong>, marking the second-highest total since the 2020 crisis and a substantial 160% increase in just two months. This pace is described as recessionary, raising concerns about the broader economic outlook.<\/p>\n<p>Furthermore, the American housing market is experiencing a notable shift, with <strong>America\u2019s homeowner population stopping its growth<\/strong> for the first time in nearly a decade, according to Redfin. This trend is driven by a combination of rising home prices, high mortgage rates, and general economic uncertainty, making homeownership increasingly challenging.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Bank of England (BoE) Monetary Policy Committee member Megan Greene stated that the most salient global risk stems 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