BOE’s Mann: Policy needs to stay restrictive to purge inflationary behaviours

  • It is better to remain restrictive for longer
  • We can cut more aggressively later once inflation risk is contained
  • There appears to be more upside risks to inflation in the UK
  • UK has seen more of an impact on services prices
  • Contemplated to vote to cut rates in August but wanted to avoid “boogie-dance” on rates

She also adds that she personally has a more guarded view on starting the rate cut cycle. Adding that she agrees with the view that inflation could stay above target for an extended period. It just means she won’t be siding with a rate cut, if conditions are to remain as they are presently.

This article was written by Justin Low at www.forexlive.com. Source