Bank of England’s Mann cautions on persistent inflation threats
High inflation in the UK remains a concern, with potential risks of rising price pressures, Bank of England interest rate-setter Catherine Mann warned on Wednesday.
“There are some possibilities about downward pressure on inflation coming from export prices coming out of China, for example. But against that … one piece of news that is downward bias, the rest of it is upward bias, and likely to be more volatile going forward over the medium term,” Mann told a panel discussion at a conference organised by BNP Paribas.
She pointed to rising energy prices and persistent inflation in services as contributing factors. Mann, who voted against last week’s decision to cut the bank rate to 4.75 per cent, expressed caution, suggesting that the impact of the new UK government’s budget and wage increases should be closely monitored.
Attribution: Reuters
Subediting: Y.Yasser
