Bank of England's Mann sees inflation at upper end of BoE forecasts
Reuters
Published Nov 24, 2022 11:45AM ET
LONDON (Reuters) - Bank of England policymaker Catherine Mann said on Thursday that she expected inflation would be at the upper end of the range of forecasts published by the central bank earlier this month.
Mann, who has voted for a faster pace of rate increases than most Monetary Policy Committee members this year, said that both wages and underlying prices were rising too fast at present for inflation to return to its 2% target, though not to the extent that there was a wage-price spiral.
BoE forecasts on Nov. 3 showed that under the median path for inflation in the central bank's model, inflation in two years' time should be below its 2% target.
But the BoE's 'fan chart' - which puts error bands around these inflation forecasts - showed a 28% chance that inflation would still be above 3% at that point.
"I can tell you that I am in the upper part of that fan, by a lot," Mann said in a presentation at a central banking conference hosted by King's College London.
Mann added that she still thought sterling carried a political risk premium, contributing to its weakness against the dollar.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.