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BOE’s Mann Says Climate Change Poses Persistent Inflation Threat
Both climate change and the path to net zero will cause higher, more persistent and more volatile inflation that central banks will have to respond to, Bank of England rate setter Catherine Mann said. Speaking at the University of Oxford, Mann said monetary policymakers will face challenges either from the transition to net zero as carbon pricing leads to “persistence in inflation” or from the “physical impacts” of climate change. The impact of carbon pricing, or carbon taxes, would not be the same as an oil price shock as it would be long-lasting with wider effects on the economy, she added. “The research ... (full story)