Cardiff Business School hosts the Bank of England’s Monetary Policy Outlook
27 October 2025
On September 30, Cardiff Business School held a prestigious event in collaboration with the Bank of England, welcoming Sarah Breeden, Deputy Governor for Financial Stability to the Postgraduate Teaching Centre.
Sarah set out her view on why the recent “hump” in inflation is unlikely to lead to additional inflationary pressure. A question-and-answer session was hosted following the speech by Professor Melanie Jones.
It was a privilege to have the opportunity to host Sarah Breeden in Cardiff and hear her set out the range and complexity of factors that inform her decision making as a member of the Monetary Policy Committee.
Sarah Breeden became Deputy Governor for Financial Stability on 1 November 2023. She is a member of the Monetary Policy Committee, Financial Policy Committee, Prudential Regulation Committee and the Bank’s Court of Directors.
She has specific responsibility within the Bank for financial stability, the supervision of financial market infrastructures, international issues, central bank digital currency and fintech.
Sarah opened her speech at Cardiff Business School by warmly praising both the city of Cardiff and the institution itself:
“It’s a real pleasure to be here in Cardiff, a city that has shown the world the value of teamwork, whether through rugby at the Principality Stadium or in its history as a hub of global trade.
Similarly, Cardiff Business School has been at the forefront of nurturing future leaders and thinkers, equipping them with the skills to navigate the ever-changing economic landscape.”
Sarah explained, “Inflation has come down significantly since it hit double figures in late 2022, supported by the restrictive stance of monetary policy, but the road has not been smooth. Having fallen back to our 2% target last year, headline inflation has risen again, back up to 3.8% in the latest data for August and we think it will have increased again to around 4% for September. This is too high.”
Key themes and messages from Sarah Breeden’s speech included:
- Financial stability and resilience: Sarah stressed the need for financial stability amid global risks like geopolitical tensions and climate change, urging continued adaptation to evolving threats.
- Climate change and the financial sector: Sarah called for better integration of climate risks into financial decisions and emphasized the importance of consistent, high-quality climate disclosures to support the net-zero transition.
- Innovation and the future of money: Sarah discussed central bank digital currencies, advocating for innovation that maintains trust and stability.
- Engagement with academia and policy collaboration: Sarah praised academic institutions’ role in shaping policy and highlighted the value of partnership between higher education, industry, and policymakers.
The full speech can be accessed on the Bank of England’s website.
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