Bank of England’s Mann Explains Decision to Keep Interest Rates Steady
Bank of England interest rate-setter Catherine Mann revealed she voted to maintain current borrowing costs last week, despite previously advocating for a substantial 50-basis point cut in February, because the UK labor market has demonstrated greater resilience than anticipated. "The first observation is that the labor market has been more resilient. Now, yes, we've had some prints that are indicative of a slowing labor market, but it is not a non-linear adjustment," Mann explained during a CNBC television interview on Wednesday. Data released Tuesday showed a decline in employment, though economists characterized the decrease as relatively modest. Mann additionally expressed concern about rising household inflation expectations and goods price inflation. The Bank of England reduced its benchmark Bank Rate by a quarter percentage point on May 8, a decision supported by five of the nine members on the Monetary Policy […]