Finance
BoE's Greene sees weaker jobs, consumption as key to any rate cut vote
Published by Global Banking and Finance Review
Posted on December 1, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 1, 2025
2 min readLast updated: January 20, 2026
BoE's Megan Greene sees potential rate cuts if UK jobs and consumption weaken further. Current rates held at 4% with concerns over pay growth.
(Corrects paragraph 2 quote to read "deteriorate", not "generate")
LONDON, Dec 1 (Reuters) - Bank of England policymaker Megan Greene said on Monday she would need to see more signs of weakening in the labour market and consumption in the economy to warrant voting for an interest rate cut.
"I would need to see the labour market deteriorate more, and that would need to play out not just in the unemployment data, but also in the employment data," she said in an interview with CNBC.
"If the outlook for consumption would end up much weaker than what we are expecting, then that might shift my views as well."
Greene in November voted with a narrow majority of 5-4 to hold interest rates. Last month she said she did not think borrowing costs at 4% were "meaningfully restrictive" and that she remained concerned about future pay growth.
She said last week, after finance minister Rachel Reeves' budget, that measures to lower households' energy bills could help lower household's inflation expectations but that the policy implication was unclear.
Financial markets are betting on the BoE cutting rates in one further quarter-point move to 3.75% by the end of 2025.
(Reporting by Suban Abdulla and Andy Bruce)
Monetary policy refers to the actions taken by a central bank to manage the money supply and interest rates to influence economic activity and achieve macroeconomic goals such as controlling inflation and stabilizing currency.
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage. They are influenced by central bank policies and affect consumer spending and investment.
Financial markets are platforms where buyers and sellers engage in the trading of assets such as stocks, bonds, currencies, and derivatives, facilitating capital allocation and investment.
Employment opportunities refer to the availability of jobs in various sectors of the economy, influenced by factors like economic conditions, industry growth, and labor market dynamics.
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