BOE’s Mann Lifts U.K. Bond Yield With Hint of Bigger Move in May

  • Policy maker is considering the case for a half-point increase
  • Focus on how economy is performing after inflation squeeze

Catherine Mann

Photographer: David Paul Morris/Bloomberg
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Bank of England policy maker Catherine Mann said she’s considering whether interest rates need to rise by more than a quarter point next month, reigniting the debate about a quicker pace of tightening for monetary policy.

Money markets cranked up BOE tightening wagers after the remarks, betting on at least one half-point hike by August. Yields on U.K. two-year government bonds -- which are the most sensitive to monetary policy -- surged by as much as 16 basis points to 1.72%, the highest since 2009.