Finance
Bank of England's Mann says inflation is still a challenge
Published by Global Banking & Finance Review®
Posted on July 15, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 15, 2025
2 min readLast updated: January 22, 2026
Catherine Mann of the Bank of England emphasizes the ongoing challenge of inflation and the need for interest rate adjustments to meet the 2% target.
LONDON (Reuters) -Bank of England policymaker Catherine Mann said on Tuesday that inflation pressures remained a challenge despite a fall in the pace of pay growth in recent months, and that it was important to use interest rates to bring down price growth.
"We have seen wage rates come down, so people are getting wage increases, but not at the rate in the past," Mann said in an interview with Business in Wales.
"And we’ve seen price inflation come down quite a bit, but it’s still a challenge because it's still well above our 2% objective."
Mann stressed the importance of using interest rates to bring inflation back to target.
"It’s important for us to continue to use monetary policy in order to get us to that 2% inflation objective because inflation is a tax on everybody," Mann said.
Mann, an external member of the BoE's Monetary Policy Committee, voted to keep borrowing costs steady at the MPC's last two meetings, including one when a majority of her colleagues backed a cut.
Financial markets are betting on the BoE cutting rates by a quarter of a percentage point to 4% when it announces its next move on August 7, and see rates most likely falling to 3.75% by the end of 2025.
(Reporting by Suban AbdullaEditing by William SchombergWriting by William Schomberg)
Catherine Mann stated that inflation pressures remain a challenge, even though wage growth has slowed down recently.
The Bank of England's inflation target is 2%, and Mann emphasized the need to use monetary policy to achieve this objective.
Financial markets are betting on the Bank of England cutting rates by a quarter of a percentage point to 4% in their next announcement.
Mann noted that while wage rates have come down, people are still receiving increases, but not at the rate seen in the past.
Mann stressed the importance of using interest rates as a tool to bring inflation back to the target level, as inflation acts as a tax on everyone.
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