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Bank of England Warns: Climate Change Threatens Economy

5/14/2025

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Summary

Story summary

James Talbot, the Executive Director at the Bank of England, has sounded the alarm on climate change as a pressing issue for monetary policymakers. He highlighted the urgent need to address climate risks—like extreme weather and transition policies—that threaten inflation and economic output. Talbot called for central banks to weave these critical factors into their strategies to safeguard economic stability amidst growing climate shocks.

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Story summary

James Talbot, the Executive Director at the Bank of England, has sounded the alarm on climate change as a pressing issue for monetary policymakers. He highlighted the urgent need to address climate risks—like extreme weather and transition policies—that threaten inflation and economic output. Talbot called for central banks to weave these critical factors into their strategies to safeguard economic stability amidst growing climate shocks.