MNI BRIEF: BOE Mann Makes Case For Front-loading Rate Hikes

Bank of England Monetary Policy Committee member Catherine Mann, who has been one of THE most hawkish MPC members, has again made the case for front-loading rate hikes.

Mann, who voted in the minority for a 75 basis point hike at the September MPC meeting, said research on monetary policy strategy "makes it clear that front-loading policy to affect the inflation process but also to affect inflation expectations puts us in an environment where the trade-off (between output and inflation).. is less severe."

In her other comments at a CABE event Wednesday, she highlighted the dramatic decline in UK labour force participation which has fed through to a very tight labour market. She said that earnings growth was outstripping its historical patterns and that the UK was in "a high inflation environment." The MPC is widely expected to hike substantially in November, with market pricing having pointed to a 100 bps increase.