BoE's Mann: Forward-looking indicators raising the risk of inflation persistence
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Remarks by Catherine Mann before the UK Treasury Committee.
- Forward-looking price and wage indicators have been flat and above target for four months, raising the risk of inflation persistence.
- Financial markets' inflation expectations suggest the BoE will not get to a sustainable 2% inflation in the forecast horizon.
- Risks to inflation are almost all upside.
- I do not use gradual language on rate cuts.
- I prefer activist strategy on monetary policy.
- It's important to keep rates on hold, and not pursue a gradualist strategy on rate cuts.
- The current stance on monetary policy is not particularly restrictive.
- Gradualism causes inflation persistence to drag on for longer.
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