BoE’s Mann: We need to see sustained slower service inflation

Bank
of
England
(BoE)
Monetary
Policy
Committee
member
Catherine
Mann
noted
on
Wednesday
that
overall
progress
on
inflation
has
been
“touch-and-go”,
and
warned
of
a
potential
rebound
in
headline
inflation
figures.

Key
highlights

The
supply
side
of
the
economy
is
growing
very
slowly,
I
still
see
labour
market
tightness.

Wage
growth
is
still
far
away
from
being
constistent
with
the
inflation
target.

We
need
to
see
sustained
slower
service
inflation.

Until
I
see
some
deceleration
in
services
prices,
I’m
not
in
a
position
to
cut.

The
2%
inflation
we
see
now
is
a
touch
and
go,
it
will
be
above
2%
for
the
rest
of
the
year,
that
matters
for
my
decision
making.