Bank of England's Mann Advocates Holding Rates Steady to Ensure Inflation Expectations Remain Anchored

Bank of England policymaker Catherine Mann stated that although she is concerned about rising unemployment, she is prepared to keep interest rates at their current level for a longer period in order to ensure that inflation expectations are kept in check.

After a report this week showed UK inflation dropping to 3%, Mann said in an interview with Central Bank Central podcast: "We must bring inflation down to 2%. If that means I need to hold steady for longer in order to keep inflation expectations at 2%, then I have to do so."

Following Chief Economist Huw Pill’s comments last week that rates are "slightly on the low side" but ruling out a possible hike, Mann has become the second Monetary Policy Committee member to hint at keeping rates steady at 3.75% at next month's meeting.

In the podcast, she described the labor market as "weak" and said the latest data showing the unemployment rate rising to 5.2%, up from 4.7% six months ago, is "very concerning."

Editor: Guo Mingyu