MANCHESTER, England (Reuters) – Bank of England rate-setting official Catherine Mann stressed on Wednesday the strength of price pressures in the British economy, giving a clear signal that she is unlikely to vote for a rate cut in August.
Asked how the fall in inflation to the Bank of England’s 2% target affected her thinking on policy, Mann said the fall was just “touch and go” and that inflation was likely to rise above that rate for the rest of the year.
Mann, a hawk on the Bank of England’s Monetary Policy Committee, added that growth in wages and service prices was still inconsistent with the Bank of England’s target.
“Until I see some slowdown, sustained slowdown in services, I’m really not in a good place,” Mann said after giving a speech on business investment at Alliance Manchester Business School.
The fact that inflation will rise later this year “affects the decision-making process,” she said.