BoE policymaker Catherine Mann said today that keeping rates on hold is “appropriate for the current period,” and warned that the risk of sticky inflation remains elevated. Speaking to Bloomberg TV, she flagged “drift in inflation expectations” as a key concern, noting that it reinforces the persistence of price pressures.
Mann argued that the scenario outlined earlier this year — one where inflation risk lingers longer than expected — is now “playing out.” She added that the UK’s supply side continues to pose challenges for both the economy and policymakers, making it harder to fully restore price stability.
On trade, Mann said she does not yet see diversion effects feeding through as the “tariff landscape continues to be shifting.” “The domestic component is the more important issue that I need to face,” she said.
