Incoming BoE official Breeden agrees on ‘upside’ inflation risk

Incoming Bank of England deputy governor Sarah Breeden said on Tuesday that she agreed with her future colleagues on the Monetary Policy Committee that the risks to inflation lay to the upside.

Breeden, who will replace Jon Cunliffe as the BoE’s deputy governor for financial stability, said she saw balanced risks to growth and unemployment in both directions. Economic output was likely to be flat in the next couple of years, she said.

“I agree with the MPC that the risks to inflation around the August forecast are skewed to the upside,” Breeden said in a written submission to parliament’s Treasury Committee, ahead of a hearing to approve her appointment.