Bank of England hawkish representative Glenn Green repeats "hawkish" stance: interest rates should only be cut further if the labor market weakens.

Bank of England Monetary Policy Committee member Megan Greene said that the labor market needs to weaken further before she can support another rate cut. Greene stated on Monday that there are signs of stabilization in employment and job vacancy data, indicating that she will continue to oppose further easing of monetary policy. She also mentioned that if the expected recovery in consumer spending does not materialize, it may also change her view on borrowing costs. She said in an interview, "I need to see further deterioration in the labor market, not only in unemployment data but also in employment data. If the outlook for consumption ends up being much weaker than we expect, that could also change my view." It is understood that Greene voted against the Bank of England's last rate cut in August and is expected to remain in the hawkish camp at the upcoming crucial meeting. Bank of England Governor Andrew Bailey could be a key swing voter, pushing the Monetary Policy Committee towards loosening policy at the meeting on December 18. Currently, market expectations for this policy adjustment are close to 90%. Although Greene stated that a weakening labor market may prompt her to change her stance, she also pointed out that recent signs suggest that labor demand has stabilized. She said, "This adjustment has essentially become a thing of the past, indicating that the labor market will not face a major shake-up as I was concerned about a year ago. Observing job vacancy data, the number has stabilized after a continuous decline, while core indicators of employment growth remain stable in positive territory, further confirming the market's resilience." In another appearance on Monday, Bank of England Monetary Policy Committee member Silvana Tenreyra warned of the impact of Brexit on the services sector. Last year, the service sector accounted for over half of the UK's total exports. Despite the service sector being unaffected by tariffs, it still faces obstacles such as differing qualification requirements. Tenreyra is a vocal critic of Brexit, and she stated that the promise of building a "Global Britain" has not been fulfilled, citing new research focusing on the service sector. Speaking at a conference hosted by the UK Trade Policy Observatory in London, Tenreyra stated in her keynote speech, "Five years have proven the answer to be negative - the UK has not gained a global competitive advantage through Brexit." She further emphasized, "For example, in the area of services trade, our historically strong sector, market share has been steadily declining", followed by highlighting, "This is a structural shift that has occurred after Brexit." Tenreyra stated that the decline in UK services exports to the same destinations relative to other countries is between "4% to 5%". She mentioned that sectors most affected by Brexit in the service industry have experienced slower growth compared to less affected industries. In a speech last month, Tenreyra cited another survey showing that the impact on businesses after Brexit was more severe than reflected in trade data.