BOE’s Mann Says Policymakers Can Afford to Wait on Rate Cuts
- Chief hawk says monetary policy lag is shorter than assumed
- When I move, I will ‘move big’ on basis of clear evidence
This article is for subscribers only.
Bank of England rate-setter Catherine Mann said monetary policy is impacting inflation more quickly than economic theory suggests, allowing officials to wait before making big cuts to interest rates.
Speaking on a panel in London on Wednesday, Mann said that rate decisions can pass through to the pricing decisions of firms without delay, rather than the typical 18 to 24-month lag of monetary policy in textbooks.