BOE's Mann: Drift in medium-term inflation expectations is already apparent

https://www.bankofengland.co.uk/speech/2022/september/catherine-l-mann-53rd-annual-conference-of-the-money-macro-and-finance-society

Catherin Mann, speaking at the 53rd Annual Conference of the Money Macro and Finance Society 'Inflation Persistence and Monetary Policy Strategy' at the University of Kent:

• We cannot be complacent in the face of the short-term spikes and medium-term drift in inflation expectations
• Acting more forcefully now, to ensure that the drift does not become the norm, is designed to avoid depending on a deeper and longer contraction to return inflation to target
• Recognising the potential for a shift in the Phillips curve shows how acting sooner and more forcefully can short-circuit the embedding of inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term
• A fast and forceful tightening is superior followed by a pause or even a reversal is preferable to a gradual approach
• The more we control medium-term inflation expectations now, the less tight for long monetary policy will need to be
• Full text

Mann is a hawk so none if this is a surprise. This is also the kind of rhetoric that's increasingly embedded in the groupthink of central banks. They believe it's better to hike even in the face of a recession than to let inflation expectations become de-anchored.

/GBP GBP The Great British pound (GBP) or pound sterling is the official currency of the United Kingdom, Jersey, Guernsey, the Isle of Man, Gibraltar, South Georgia, and other pacific territories.The GBP is currently the fourth most-traded currency worldwide in forex markets after the US dollar, euro, and Japanese yen.As the oldest currency in continual use, the GBP holds great weight on the world market and is also the fourth largest reserve currency.The Bank of England (BoE) is the central banking auth The Great British pound (GBP) or pound sterling is the official currency of the United Kingdom, Jersey, Guernsey, the Isle of Man, Gibraltar, South Georgia, and other pacific territories.The GBP is currently the fourth most-traded currency worldwide in forex markets after the US dollar, euro, and Japanese yen.As the oldest currency in continual use, the GBP holds great weight on the world market and is also the fourth largest reserve currency.The Bank of England (BoE) is the central banking auth Read this Term