Bank Of England Monetary Policy Committee member Catherine Mann cites financial conditions in gilt sales decision.
The tightening in financial conditions will be a factor in the decision facing the Bank of England's Monetary Policy Committee over whether or not to start gilt sales when Bank Rate hits 1%, committee member Catherine Mann said Thursday, a level rates are expected to hit following the committee's May meeting.
The MPC's policy guidance is that it will consider whether to start active gilt sales at 1%, rather than just continuing with its current policy of "natural run-off", letting maturing gilts expire without replacement.
In a Q and A, Mann, asked about gilt sales, said "I do note financial conditions have been changing." Asked about policy setting faced with a cost of living crisis Mann said that the MPC's primary objective was to get inflation back to target. "It may mean interest rates go up a little bit. We will just have to see where we are in May," she said.