Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

NEWS

Climate change likely to boost inflation, Bank of England’s Mann says

By David Milliken

LONDON (Reuters) – Climate change and countries’ different approaches to combat it are likely boost inflation and have other economic impacts that are directly relevant to central bank rate-setters, Bank of England policymaker Catherine Mann said on Monday.

“The research here points to increased inflation, increased inflation persistence, and increased inflation volatility associated with climate shocks, policies, and spillovers,” she said in the text of a speech published by the Bank of England.

Mann was part of a minority of three Monetary Policy Committee members who voted this month for the BoE to raise its main interest rate to 5.5% from 5.25%.

Much of the BoE’s work on climate change so far has focused on its potential longer-term impact on insurers and banks, through risks posed from extreme weather and on broader regulatory change that may affect their investments.

However, Mann said climate change policies were increasingly likely to have an impact on inflation over the shorter two- to three-year horizon which the MPC focuses on.

“Not only is it within my remit to respond to the macroeconomic effects of climate change, but my remit requires me to do so,” she said in prepared remarks for a University of Oxford seminar.

Research pointed towards price shocks created by changes in carbon pricing as having a more persistent effect on inflation than oil price shocks, she said.

Varying degrees of action to combat climate change in different countries were likely to create global economic spillovers, and the choice between carbon taxes and emission trading schemes was also significant, she added.

“Research on the impacts and interactions between carbon policies domestically and abroad is particularly relevant for the UK, where a government commitment to net zero in 2050 has already been made,” she said.

 

(Reporting by David Milliken; Editing by William Schomberg)

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts