Bank of England Monetary Policy Committee member Catherine Mann spoke in New Zealand, at the Reserve Bank of New Zealand economic research conference:
- believes the recent inflation rise is unlikely to cause long-term price issues in the UK
- still supports restrictive monetary policy
Mann argued against a gradualist approach to cutting rates, which most BoE policymakers favor, citing recent global market volatility:
- The initial reason for gradualism was to avoid sharp moves in bond markets
- But recent international spillovers—such as uncertainty around U.S. and European policies—have already caused sharp fluctuations
- "With substantial volatility coming from financial markets, especially from cross-border spillovers, the founding premise for a gradualist approach to monetary policy is no longer valid."
Full text of Mann's speech is here:
