MNI BRIEF: BOE Mann Sees Inflation Pressure From Weak Sterling

Tightening by other central banks could lead to further downward pressure on sterling, fueling upside inflation risks, Bank of England Monetary Policy Committee member Catherine Mann told an MNI Market News Connect event Monday.

"If the Fed tightens at the currently expected pace, and the ECB musters an increase soon, then there could be "additional depreciation pressure on Sterling that could add to inflation particularly in the near term," she said.

Mann voted for a 50 basis point hike ke in June but she raised the possibility of partially reversing tightening later on as the economy weakens. "I open the door to a policy rate reversal in the medium term when the domestic supports to demand fade and when weakness in external sources of demand bite," she said.