Key facts
- Greene wrote in the Financial Times that forward-looking measures suggested pay growth would stabilize at or above 3.5% over the coming year.
- Greene wrote that the labor market may have less slack than previously thought and that it may already have peaked.
- Greene said the risk of wage growth getting stuck at higher levels and firms passing costs through was greater.
Bank of England policymaker Megan Greene said on November 11, 2026 that it was appropriate to "proactively tighten our monetary policy stance" to guard against the risk of wage growth getting stuck at higher levels and firms passing those costs on.
Writing in the Financial Times, Greene said forward-looking measures suggested pay growth was likely to stabilize over the coming year at or above 3.5%, a level she described as above what would be consistent with keeping inflation around 2%.
Reviewing the dynamics of the jobs market and wage growth, Greene wrote: "All of this suggests we don't have as much slack as we thought and it may already have peaked." She added: "The risk of wage growth getting stuck at higher levels and firms passing those costs through is therefore greater, and it is appropriate to proactively tighten our monetary policy stance to lean against this."