Bank of England Deputy Governor Downplays Wage-Price Feedback Loop Concerns

Bank of England Deputy Governor Sarah Breeden has minimized concerns about a potential wage-price feedback loop in light of the Iran War. Bloomberg posted on X, Breeden emphasized that the current weak economic conditions reduce the bargaining power of both workers and firms, suggesting that the risk of such a loop is limited. Her comments come amid ongoing discussions about the economic impacts of the conflict and its influence on inflationary pressures.