Bank of England's credibility and UK economy at risk from Net Zero radicalism

London, 13 June - Net Zero Watch has called on MPs to reject Megan Greene from joining the Bank of England’s rate-setting Monetary Policy Committee and warned that her green activism risks undermining the credibility of the Bank's neutrality in setting interest rates.

According to media reports, Ms Greene has called for the bank to create “preferential” interest rates to help speed up the push for Net Zero, despite acknowledging that such a move could threaten its independence.

In an article published before her nomination, Megan Greene warned that central banks needed to “go further” to help combat climate change and to “give banks preferential (negative) rates if they direct the funds toward green investments”.

Any private bank or investment company that deliberately conspired to put capital in jeopardy would be in breach of its fiduciary duties. If it goes down that route the Bank of England would be in breach of that very duty.

Lord Frost, the former Cabinet minister told the Sunday Telegraph that the UK would be “deranged” to adopt Ms Greene’s idea, adding: “It is deeply troubling that a prospective member of the Monetary Policy Committee should have advocated such a collectivist and socialist approach.”

In 2021, Rishi Sunak gave the Bank a new mandate to fight climate change and help to achieve the Govt’s Net Zero policy, a move that has since been widely criticised for distracting it from and failing in its key role of combating inflation.

Former Chancellor George Osborne and his old sparring partner, Ed Balls, Labour's former Shadow Chancellor, have both called for the mandate to be cancelled so that the Bank can focus on its core mission.

The House of Commons Treasury Committee will hold a hearing this morning during which MPs will assess whether Megan Greene has the required personal independence and appropriate professional competence for the role.