Boe Mann Inflation Remains High

last updated on

Boe Mann Inflation Remains High

Bank Of Englands Mann: Inflation To Remain High In Uk

According to the Bank of England's Mann, inflation will remain elevated in the UK. She added that the inflation may overshoot and cross the BoE's forecast for the medium term.

These comments from Catherine Mann are very important as she is one of the many members of the BoE. She is also a member of the rate-setter committee which makes her views more important.

Inflation Is Deeply Embedded

Mann was the only vote against the rate cut at the last BoE meeting. At that time, the decision to cut the rates was 8-1, with Mann being the only one against it. She also opposed the first rate cut by the BoE in August 2024.

According to her, inflation is deeply embedded in the UK economy. That's why it is important to hold the interest rates for longer.

Mann added that when there is sufficient data to prove a steady decline in inflation, she will also vote in favor of a rate cut. But right now, Mann doesn't see anything like that on the horizon.

Just a week ago, the Bank of England revised its inflation forecast higher due to the increase in the minimum wage. Also, the new government announced a fiscal stimulus package for the short term that will also drive up inflation.

According to the BoE, the inflation will be around 2.5% by the end of the year 2024. Also, the inflation will not decline below 2% until the middle of 2027. In 2025, the BoE is expected to cut the rates twice while the ECB will go with 5 rate cuts.

The keyword used by Mann was 'Sticky Inflation' which shows that it will not go down so easily. Now, it remains to be seen how the BoE will handle the changing dynamics around the world.

With the Trump's plan to put tariffs on everything, it will surely impact the UK economy as well.

Trending Stories