BOE’s Mann Calls for Rates to Hold Steady Amid Sticky Prices

Bank of England rate-setter Catherine Mann said that borrowing costs should be held for longer at their current levels, underscoring concerns at the British central bank about persistent inflation.

Mann said in speech on Tuesday in Mexico that a “more persistent hold on Bank Rate is appropriate right now” as her central case is for elevated price pressures to last. She said that policy was “not tight enough” to control inflation under the market path in the BOE’s Aug. 7 forecast for two additional rate cuts by the second half of next year.