Net Zero Policies Can Impact UK Inflation Rate, Warns BoE Economist

The impact of transitioning to a net zero economy on inflation is of concern to monetary policymakers, the Bank of England’s (BoE) economist has suggested. Ms. Mann is a member of the BoE’s Monetary Policy Committee (MPC), which sets the bank rate and directs the government’s monetary policy. Having voted for a higher interest rate of 5.5 percent in the latest MPC votes, Ms. Mann said that climate mitigation policies can affect British macroeconomics. This includes inflation rate, interest rate, labour market and investment. Speaking at a University of Oxford event, Ms. Mann has argued that government policies, targeting climate change, such as carbon taxes and emission trading schemes (ETS), risk raising costs for families....