Central Banks
BOE’s Mann Signals Caution on Rate Cuts, Seeing Higher Inflation
- Earlier comments from chief economist interpreted as hawkish
- Traders pare back bets on a rate cut at the August meeting
Catherine Mann
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
Bank of England policy maker Catherine Mann hinted that she is not ready to back interest rate cuts, warning of a resurgence in UK inflation and rapid increases in services prices.
The official who is the most hawkish of the nine members of the Monetary Policy Committee pointed to stubbornly high wage growth and services inflation — both of which are running near 6% — as roadblocks to the UK central bank meeting its 2% target sustainably.