A central bank policymaker has spoken out to warn that the globalist “Net Zero” agenda of the World Economic Forum (WEF) and United Nations (UN) is behind the soaring inflation rates felt around the globe.
According to Catherine Mann, a prominent member of the Bank of England’s (BOE) Monetary Policy Committee, “climate change” policies are a key driver of soaring inflation.
“Climate change” and countries’ different approaches to combat it are likely to boost inflation, Mann warns.
These green agenda policies will also cause other economic impacts that are directly relevant to central bank rate-setters.
The application of Net Zero policies promotes a potential rise in operational costs for businesses, Mann explains.
This rise causes fear for consumers as these high prices could be pushed forward.
The “climate change” policies include carbon taxes and emissions trading schemes.
Mann was part of a minority of three Monetary Policy Committee members who voted this month for the BOE to raise its main interest rate to 5.5 percent from 5.25 percent.
“The research here points to increased inflation, increased inflation persistence, and increased inflation volatility associated with climate shocks, policies, and spillovers,” Mann said.
“Evidence has suggested upward pressure on inflation [and] downward effects on output.”
The warning comes at a tough time for the Bank of England and British households, with inflation still running at 6.7 percent.
This is more than three times the Bank’s two percent target.
At the same time, recent figures have shown the economy is stagnating.
It comes after the UK Government rowed back on some of its Net Zero policies.
The government announced it would be delaying a ban on the sale of new gas and diesel cars from 2030 to 2035.
In September Prime Minister Rishi Sunak also said he would delay the ban on new oil-fired boilers from 2026 to 2035, and increase grants for heat pumps.
The BOE’s emphasis on “climate change” and Net Zero policies in relation to inflation has been faced with ongoing criticism.
However, the Central Bank believes the effects of “climate change” on the macroeconomy are a critical area requiring research and understanding.
“Not only is it within my remit to respond to the macroeconomic effects of climate change, but, in my view, my remit requires me to do so,” Mann continued.
“When climate change has macroeconomic effects – whether physical impacts from extreme weather events and higher average temperatures or transition effects associated with transforming to a net zero economy, including explicit implications for inflation – it becomes a concern for monetary policymakers, directly within a price stability mandate.
“That applies whether the monetary policymaker’s remit includes a reference to climate change or not.”
Mann has constantly drawn attention to the relationship between “climate change,” Net Zero policies, and their implications for inflation.
She has consistently voted for higher interest rates than the majority of the nine-strong MPC.
Net Zero policies affect inflation as governments around the world seek to align with the globalist green agenda.
Businesses are being away from established production methods and into new “greener” methods.
However, this push means extra costs for businesses “presumably to be passed on fully or in part to consumers, which prompts the behavioral change needed to reduce emissions,” Mann explains.
Even if consumers themselves choose to buy less polluting products, the extra demand will push up prices until companies can boost the supply of greener goods and services, Mann added.