BoE’s Mann warns inflation pressure higher than forecasts show

LONDON (Reuters) – Bank of England rate-setter Catherine Mann said on Monday that she thought the central bank’s forecasts told a fundamentally different story to her personal view that high inflation was likely to prove to be persistent.

Mann, an external member of the Monetary Policy Committee and a long-time advocate of higher interest rates, said she thought the BoE’s forecasts published in August overestimated the effect of interest rate hikes delivered since December 2021.

“I believe the (Monetary Policy Report) forecast, for a long time, has been telling a story fundamentally different from the one I consider likely,” Mann said in a speech hosted by Redburn Atlantic, a brokerage owned by Rothschild & Co.

“My story has been one of more resilient domestic demand and more persistent price pressures, which therefore requires a more restrictive monetary policy stance.”

(Reporting by Andy Bruce; editing by William James)