Bank of England rate-setter Katherine Mann warned that the bank would likely have to raise interest rates, saying a pause in interest rates could lead to a confusing “political boogie”.
Economist Ms Mann, an independent member of the bank’s Monetary Policy Committee (MPC), said: “We need to stay on course and I think the next move on interest rates will be another hike, not a cut. or keep.
Speaking at a conference in Hungary, she said: “Uncertainty about turning points should not be a reason to wait and see, as I believe the consequences of not tightening enough far outweigh the alternative.”
Ms Mann, considered a hawkish member of the Customs Committee, argued for a larger tariff increase than the announced 0.5 percentage point increase.
Her comments followed those of bank governor Andrew Bailey after interest rates were raised from 3.5% to 4% that this could be the latest hike as inflation has “turned around” in recent months. Inflation, currently at 10.5% from 11.1% in October, should ease rapidly in 2023, the bank predicts.
Auch der Chefökonom der Zentralbank, Huw Pill, warnte letzte Woche, dass es zwar wichtig sei, die Inflation do”.
But Ms Mann warned she was “smug about inflation.”
“When there is uncertainty about the level of persistence of inflation, it is better to assume a high level because the cost of error is higher when the true inflation process is more stable than when the true inflation process is less constant,” she said. . called.
Some inflationary measures remain strong, she said, adding that “the containment of inflation this year should come down as quickly and completely as it did last year,” hurting inflation expectations.
“In my opinion, the boogie-woogie of tightening, freezing, tightening and easing is too much like fine-tuning to be good monetary policy. Through the markets it is difficult to communicate and penetrate the real economy,” she said.
While the pandemic and rising energy prices have affected other economies, Brexit has affected the UK, she said. “No other country has chosen to unilaterally impose trade barriers on its closest trading partners.”
Bank of England Governor Andrew Bailey and Chief Economist Hugh Pill will be questioned by a special Treasury Committee this week about reports from the Bank’s Policy Committee.
Source: I News
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