Image

BoE's Mann: Maintaining restrictiveness for longer is acceptable

  • UK inflation remains persistently persistent and the outlook for growth remains modest
  • I have argued that policy needed to remain restrictive for longer to squeeze out inflation persistence and rein in expectations drift
  • To create an environment conducive to growth, monetary policy must remain restrictive for longer
  • UK’s consumption gap is an outlier relative to its closest international peers
  • The evidence from consumer behaviour is that we are not there yet on inflation expectations

Mann is just repeating her previous comments here. She’s the most hawkish BoE member, so her stance remains to keep rates steady.

This article was written by Giuseppe Dellamotta at investinglive.com.

SHARE THIS POST