MNI BRIEF: BOE Mann: UK Financial Conditions A Lot Tighter

Bank of England Monetary Policy Committee member Catherine Mann said Thursday market movements have already resulted in a lot of tightening in UK financial conditions and that there is evidence of moderation in the upward momentum of inflation expectations. Mann, speaking at a Euro50 Group Meeting, noted that inflation expectations had risen but she places weight on longer-term momentum and that "clearly identifies a moderation of inflation expectations compared to where we are now."

She noted that financial markets had responded to the comments of two of her MPC colleagues, both of whom are hawkish, and comments from the US Federal Reserve and as a result they had already forced effective tightening in UK policy. Mann's remarks, however, suggest that she is not yet persuaded of the need to follow through on actual tightening.