Bank of England's Mann calls for sustained interest rate hold

The Bank of England’s Catherine Mann (Photographer: Hollie Adams/Bloomberg via Getty Images)

The Bank of England’s Catherine Mann has called for interest rates to be held where they are for longer before making a larger cut to revive the sluggish growth outlook, citing a recent spike in consumer inflation expectations as evidence price rises were embedding into the economy.

The external Monetary Policy Committee (MPC) member known for her ‘activist’ approach to monetary policy told a Bloomberg event that a rise in households’ inflation outlook driven by food price jumps could set off further rises that must be squeezed out by keeping Bank Rate at four per cent.

“I prefer a longer hold… and make a bigger cut when you do to make it very clear that this is not in response to the financial