BoE’s Mann: More tightening is needed, and a pivot is not imminent
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Bank of England (BoE) policymaker Catherine Mann is delivering a speech titled “The results of rising rates: Expectations, lags and the transmission of monetary policy” at the Resolution Foundation, in London.
“Failing to do enough on rates now risks the worst of both worlds – higher inflation and lower activity.”
“Financial conditions are now looser than what likely will be needed to moderate the embedding of ongoing inflation into the wage- and price-setting paths.”
“More tightening is needed, and a pivot is not imminent.”
“A preponderance of turning points is not yet in the data.”
“I worry about extended persistence of inflation into this year and the next.”
“Monetary policy has taken a path which has been historically aggressive but perhaps insufficiently so.”
The Pound Sterling received a bit of boost on Mann’s hawkish comments, sending GBP/USD to near 1.2030 from the daily low of 1.2015. The pair is still down 0.12% on the day.
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