Finance
Bank of England's Mann says 'we're not there yet' on inflation expectations
Published by Global Banking and Finance Review
Posted on October 9, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 9, 2025
2 min readLast updated: January 21, 2026
Catherine Mann of the Bank of England emphasizes the need for continued restrictive monetary policy to manage high inflation expectations in the UK.
LONDON (Reuters) -Bank of England interest rate-setter Catherine Mann said on Thursday that inflation expectations in Britain remain too high and interest rates should continue to bear down on price pressures.
"It is perhaps counterintuitive that in order to create an environment conducive to growth, monetary policy must remain restrictive for longer," Mann said in the text of a speech she was due to deliver at an event organised by the Resolution Foundation think tank.
"But this is necessary to bring inflation sustainably back to our 2% target in the medium term."
Mann said former Federal Reserve chair Alan Greenspan - who was her boss early in her career - had been clear that price stability occurred when households and businesses were not factoring expected price changes into their decisions.
"The evidence from consumer behaviour is that we are not there yet," she said.
Mann voted with a majority of the Monetary Policy Committee members last month to keep the BoE's benchmark Bank Rate unchanged. In August she was in a minority which opposed a cut to 4%.
Last week Mann said she thought Britain's inflation rate had become persistently high - although that did not mean further interest rate cuts were completely off the table.
(Reporting by David MillikenWriting by William Schomberg, editing by William James)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. Central banks attempt to limit inflation to keep the economy running smoothly.
Monetary policy refers to the actions taken by a country's central bank to control the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.
The Bank of England is the central bank of the United Kingdom, responsible for issuing currency, managing monetary policy, and ensuring financial stability in the economy.
The Bank Rate is the interest rate at which the central bank lends money to commercial banks. It influences the interest rates that consumers and businesses pay on loans and mortgages.
Inflation expectations are the rate at which people expect prices to rise in the future. These expectations can influence economic decisions, such as spending and saving.
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