MNI BRIEF: BOE Mann: Views Next Move More Likely Hike Than Cut
BOE Monetary Policy Committee member Catherine Mann says that the turning point in policy is uncertain but she sees the next rate move more likely a hike than a cut
The Bank of England Monetary Policy Committee should not adopt a 'wait-and-see' approach and that is should be ready to hike further, Catherine Mann said Monday. The BoE forecasts published this month suggest that little further tightening if any is needed to get inflation back to target, but Mann argued that uncertainty over where the turning point is and the outlook did not justify policy inaction. (MNI BOE WATCH: BOE Hikes By 50, "Watchful" On Inflation)
Mann said she wanted to see a sustained deceleration in underlying inflation measures and a fall in inflation expectations.
"The consequences of under tightening far outweigh, in my opinion, the alternative. We need to stay the course, and in my view the next step in Bank Rate is still more likely to be another hike than a cut or hold," she said. Mann, as a champion of policy activism, has backed faster tightening than other MPC members this cycle.