© Reuters. FILE PHOTO: People stand outside the Bank of England in the City of London financial in London, Britain, October 3, 2022. REUTERS/Henry Nicholls
LONDON (Reuters) – Bank of England policymaker Catherine Mann said her vote last month to raise Bank Rate by 0.75 percentage points reflected a weak currency, rising inflation expectations and the boost to household incomes from an energy price cap.
Mann was part of a minority of three officials on the BoE’s Monetary Policy Committee to vote for a 75-basis-point increase in September, against a majority who only wanted to raise rates by half a percentage point to 2.25%.
“I do see increasingly embedded inflation, I do see inflation expectations drifting, I do see a sterling depreciation spillover and I do see daylight between real incomes and real consumption possibilities,” she said in a discussion at Canada’s C.D. Howe Institute.