Bank of England ‘must look at climate risk to tackle inflation’

THE Bank of England must better address environmental risks to manage inflation and ensure the UK’s long-term financial stability, campaigners have said.

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(JOHN WALTON/PA WIRE)

The central bank is being urged to take a series of actions, including developing more technical expertise on climate and nature-related risks to the economy, in a paper by wildlife charity WWE.

The report, out today, outlines the negative impacts of climate change and nature loss on price stability, financial stability and growth, which it points to as the bedrocks of the UK economy and living standards.

It argues that the Bank of England is falling behind other central banks in managing environmental threats and can better align with and support the transition to a net zero, nature-positive economy.

Karen Ellis, WWF's chief economist, said: “There is so much more they could and should be doing.