ICYMI – BoE’s Mann argued against a gradualist approach to cutting rates

Bank of England Monetary Policy Committee member Catherine Mann spoke in New Zealand, at the Reserve Bank of New Zealand economic research conference:

• believes the recent inflation rise is unlikely to cause long-term price issues in the UK
• still supports restrictive monetary policy

Mann argued against a gradualist approach to cutting rates, which most BoE policymakers favor, citing recent global market volatility:

• The initial reason for gradualism was to avoid sharp moves in bond markets
• But recent international spillovers—such as uncertainty around U.S. and European policies—have already caused sharp fluctuations

• “With
  substantial volatility coming from financial markets, especially from
  cross-border spillovers, the founding premise for a gradualist
  approach to monetary policy is no longer valid.”

Full text of Mann’s speech is here:

• Holding the anchor in turbulent waters

This article was written by Eamonn Sheridan at www.forexlive.com.