Net Zero Policies Can Impact UK Inflation Rate, Warns BoE Economist

Policies targeting climate change, such as carbon taxes and emission trading schemes could risk raising costs for families, according to Catherine Mann.

Undated image of credit cards and pound coins. Dominic Lipinski/PA

The impact of transitioning to a net zero economy on inflation is of concern to monetary policymakers, the Bank of England’s (BoE) economist has suggested.

Ms. Mann is a member of the BoE’s Monetary Policy Committee (MPC), which sets the bank rate and directs the government’s monetary policy.