Bank of England policymaker Megan Greene warned that UK pay settlements of around 3.5% next year could slow progress in bringing inflationInflationInflation refers to a sustained rise in the general price level that reduces the purchasing power of money. The term belongs in Level 7 because it helps connect macro conditions...Read More back to the 2% target. She said limited wage disinflation remains a concern for policymakers.

Bank of England policymaker Megan Greene said on 8 October that early indications point to pay settlements of around 3.5% next year. Speaking in Cape Town, she expressed concern that wages were not slowing enough to help inflation return to 2%. The figure is an outlook, rather than a realised wage reading. Her comments are a new policy assessment, not an announcement of a rate increase.