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Bank of England policymaker will ‘move big’ to cut rates once inflation is under control – London Business News | Londonlovesbusiness.com

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Bank of England policymaker will ‘move big’ to cut rates once inflation is under control – London Business News | Londonlovesbusiness.com

Catherine Mann, an economist and member of the Bank’s Monetary Policy Committee (MPC), has said that the Bank of England will “move big” over cutting interest rates once inflation is under control.

Mann said speaking at the Female Central Bankers panel at the BNP Paribas Global Markets Conference that she takes an “activist” stance on the MPC.

Mann told the conference, “Last vote, I chose to hold, as opposed to cut with the rest of the committee, because, in my view, there is outside risk to inflation, already embedded potentially going forward… and in that environment it is important to hold for longer.

“And then, when I have evidence that there has been a removal or sufficient moderation of inflation persistence, then I will move at a bigger step.”

She added the monetary policy can “have an immediate effect on pricing decisions of firms and an immediate effect on inflation expectations.”

The economist describes this as “critical” when considering setting rates, she added, “That is why part of my activist strategy is, when I move, I will move big.”

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