MNI BRIEF: BOE Mann Sees Inflation Turmoil Persisting

Bank of England Monetary Policy Committee member Catherine Mann said Friday that she did not foresee a return any time soon to a world of stable inflation and that inflation risks would remain to the upside rather than be balanced around the target.

According to Mann, the steady relationships between inflation and its determinants, such as labour market tightness, were not going to return in the near future and that upside inflation risks would continue to outweigh downside ones.

Speaking at the Central Bank Research Association in New York, Mann said that while the fall in energy and food prices will have a beneficial downward effect on core inflation expectations this would only come down the track after those higher expectations had become embedded and that the story she believed in was one of inflation persistence. she has consistently been among the most hawkish of the MPC members, backing the 50bps hike at the last meeting.