Bank of England rate setter Catherine Mann: UK interest rates need to be raised further

To prevent further inflation persistence

Valeria Martinez
clock • 2 min read

Catherine Mann, one of the most hawkish members of the Bank of England’s Monetary Policy Committee, believes more tightening is needed to prevent further inflation persistence.

During a speech at the Canadian Association for Business Economics today (12 September), she said that holding rates constant at the current level risks "enabling further inflation persistence, which will have to be unwound eventually with a worse trade-off". "Would I rather assume that, with the current monetary policy stance and standard models, inflation is forecast to undershoot the target?," she asked.  "Or that, given what we have learned about time variation and non-linearities, we need to position ourselves accordingly and raise rates by more. I believe it would be prudent to ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

Trustpilot