BOE’s Greene says Middle East tension could affect inflation expectations

WASHINGTON (Reuters) – Bank of England policymaker Megan Greene said on Wednesday the recent tensions in the Middle East could pose a risk to the inflation outlook, including by heightening inflation expectations.

“I do think that what’s going on in the Middle East does pose a risk,” Greene said in a seminar hosted by the Institute of International Finance.

“I’m worried about the sort of an energy price shock and other supply side shock, which obviously follow a number of supply side shocks we’ve seen over the past couple of years, and what that might do to inflation expectations,” she said.