MNI BRIEF: Pound Key Metric For BOE, But No Target Level- Mann

The sterling exchange rate is an important metric for the Bank of England to monitor when looking at the overall economic picture, Monetary Policy Committee member Catherine Mann said on Thursday, but she added that policymakers do not look to target any specific level for the currency.

Mann, speaking at an event hosted by LC Macro Advisors, said the exchange rate affected prices, trade and overall confidence, and particular attention was needed when dollar-priced commodities were at such lofty levels.

In answer to an MNI question, she repeated her comments at a recent Market News webinar, suggesting there was an upside risk to inflation from the weaker pound. Grant Fitzner, chief economist at the Office for National statistics, told MNI sterling will have an upside impact on producer inflation and that we are yet to see the recent weakness in the currency reflected in the data.