Free Trial

MNI BRIEF: Financial Conditions A Gilt Sales Factor-BOE's Mann

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.

MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com
MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.