MNI BRIEF: BOE Mann: China Zero Covid Higher Inflation Driver

China's zero covid policy, which has hit supply chains, was one driver of global inflation and further supply disruptions in emerging markets with low vaccination rates would continue to hit advanced economies, Bank of England Monetary Policy Committee member Catherine Mann warned Friday.

Speaking at a Council for Foreign Relations events Mann said "US fiscal support and to some extent China zero Covid strategy is manifested in global inflation." She cited research on the cross border implications of low vaccine deployment in emerging market, which showed that supply chain disruptions could take "0.5 to 3.0% off GDP for advanced economies," depending on how Covid and vaccine coverage unfolds. Mann was one of the majority of MPC members who backed the December rate hike to start to tackle the higher inflation outlook.