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Bank of England rate-setter says risks to UK inflation justify slower cuts
Risks to the UK’s inflation outlook may have increased, justifying the need to take a cautious approach to cutting interest rates, a Bank of England policymaker has said.
Megan Greene, a member of the Bank’s rate-setting committee, said the current uncertainties and risks facing the economy meant it may be better to “skip” rate cuts rather than lower them quickly.
Speaking at Adam Smith Business School at the University of Glasgow, Ms Greene said “supply shocks” to the economy were likely to become more frequent.
This refers to events such as the Covid pandemic and the war in Ukraine that impact production and therefore can send prices higher.
She said the lessons learned from recent supply shocks “suggest that the risks to our inflation outlook have shifted to the upside”.
This was partly because of weak productivity growth in the UK as well as the rising unemployment rate, which both put pressure on overall inflation.
Ms Greene said it was clear that a “year-long tick up in inflation puts the UK in stark contrast with our developed economy peers”.
She also pointed to climate change and higher tariffs as factors that could generate supply shocks in the future.
However, the policymaker said the risks from global trade tensions had “abated somewhat” due to a “flurry of trade agreements” between the US and other countries helping to reduce uncertainty.
Ms Greene stressed that she was “not in favour of policy reversals by central banks” – referring to sharp interest rate cuts – and that could mean “skipping cuts” was a better approach.
“Instead, I believe an appropriate response to the uncertainty and risks we are currently facing should involve a cautious approach to rate cuts going forward,” she concluded.
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SEBI proposes stricter base price and band rules for gold, silver ETFs, including cooling-off periods after sharp global price swings to curb volatility.
Amid Global Commodity Volatility, SEBI Plans New Price Band Rules for Gold, Silver ETFs
The market regulator has sought to curb extreme volatility in gold and silver Exchange Traded Funds (ETFs) by proposing changes to the base price and price band framework. Currently, there are no separate price bands for ETFs aligned with their underlying assets, making them vulnerable to sharp price movements.
The proposal comes after sharp volatility in gold and silver ETFs triggered by fluctuations in global commodity prices. On some days, these ETFs fell by over 15%, while on others, they recorded sharp gains.
Stock exchanges currently apply a fixed price band of plus or minus 20% on the base price of ETFs, except for Overnight ETFs investing only in TREPs, which have a price band of plus or minus 5%.
Moreover, the base price for applying price bands to ETFs is taken as the T-2 day closing Net Asset Value (NAV) by exchanges, instead of the T-1 day closing NAV or price, as is the case with indices and individual stocks. This creates a challenge, as the closing NAV of ETFs typically differs between T-1 and T-2 days. Corporate actions such as bonuses and dividends are adjusted manually, increasing the risk of errors.
What Are the Key Proposals?
SEBI has proposed that the base price be determined using either the closing price of the ETF on T-1 day (weighted average price of the last 30 minutes), the closing NAV of T-1 day, or the average indicative NAV (iNAV) of the last 30 minutes of T-1 day.
Further, the regulator has proposed an initial price band of plus or minus 10% for equity and debt ETFs, which can be flexed up to plus or minus 20%. A cooling-off period of 15 minutes will apply, and up to two flexes will be allowed in a day.
For gold and silver ETFs, the regulator has proposed an initial price band of plus or minus 6%, which can be flexed up to plus or minus 20%. This will also include a 15-minute cooling-off period.
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February 14, 2026, 16:08 IST
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Oil and Gas Regulatory Authority (OGRA) forwarded a summary to the federal government suggesting an increase of Rs4.39 per liter in petrol price for the next fortnight.
After approval from the federal government, one liter of petrol will be sold at Rs257.56 instead of Rs253.17 per liter.
The price of high-speed diesel (HSD) will be increased by Rs5.40 per liter.
After approval, the price of one liter of high-speed diesel will increase by Rs268.38 to Rs273.78.
The proposal to increase the price of kerosene by Rs4 per liter is also on the cards.
The OGRA also recommended increasing the price of one liter of light diesel by Rs6.55.
The new prices of petroleum products will be effective from February 16, 2026.
Due to tension between the USA and Iran, petroleum prices are likely to increase further.
The group, based in Solihull and Wolverhampton, says its vet bills are costing them more.
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