Connect with us

Banking

BoE’s Mann says she can wait before raising rates

BoE's Mann says she can wait before raising rates 1

LONDON (Reuters) – The Bank of England can hold off on raising interest rates because investors are doing some of the central bank‘s work for it by betting on tighter monetary policy in Britain and the United States, BoE interest rate-setter Catherine Mann said.

“They see that monetary policy normalisation is the direction of travel … and so they are doing their homework and they are starting to price in that direction of travel,” Mann said during an online discussion organised by the Euro50 Group, which debates European economic and financial policy issues.

“This means that there’s a lot of endogenous tightening of financial conditions already in train in the UK. That means that I can wait on active tightening through a Bank Rate rise,” she added.

Many investors are betting the BoE will raise interest rates before the end of the year, becoming the first major central bank to do so since the start of the coronavirus pandemic.

Mann, a former chief economist at the Organisation for Economic Co-operation and Development and at U.S. bank Citi who joined the BoE in September, has previously sounded less worried about inflation than other Monetary Policy Committee members.

Last month she said she expected inflation pressures to be “transitory” rather than “troubling”.

On Thursday, she said she was keeping an eye on the risk that supply chain problems and trade barriers created by Brexit might allow British companies to raise prices more than their peers in other countries, creating greater inflation risks.

(Reporting by David Milliken; Writing by William Schomberg)

Editorial & Advertiser disclosure
Our website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
Global Banking and Finance Review Awards Nominations 2021
2021 Awards now open. Click Here to Nominate

Recommended

Newsletters with Secrets & Analysis. Subscribe Now