BoE’s Mann foresees inflation bounce after touching 2%

BoE MPC member Catherine Mann, known for her hawkish stance, expressed caution in a speech overnight. Although headline inflation has fallen to 2%, Mann described this as a “touch and go,” predicting that “we’re going to be above 2% for the rest of the year.”

Mann emphasized the need to see a “sustained deceleration” in services inflation, signaling her reluctance to support interest rate cuts at this stage. Her comments suggest she remains committed to resisting rate cuts despite recent data showing headline inflation at the BoE’s 2% target.