Director of the Bank of England (BoE), Catherine Mann signaled this Monday (6) that the British BC should raise interest rates again. “In my opinion, the next step (of the benchmark rate) is even more likely to be another hike than a cut or maintenance,” she said, in a speech at the BoE conference.
Catherine Mann also assessed that there are “concrete risks” of an increase in the BoE’s inflation outlook for the United Kingdom. “To achieve inflation consistent with the target (of 2% of the BoE), the moderation of inflation this year will have to be as fast and absolute as was its spike last year”, she said.
Last week, the BoE raised its benchmark rate by another 50 basis points to 4%, as was widely expected. Although in a phase of deceleration, the annual rate of consumer inflation in the United Kingdom remained at a high level of 10.5% in December.
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