BOE's Mann: 50 bps hike reduces risk of inflation being boosted by weaker sterling

Eren Sengezer FXStreet

Bank of England policymaker Catherine Mann said on Monday that a 50 basis points rate increase would reduce the risk of domestic inflation being boosted by weaker sterling, as reported by Reuters.

Additional takeaways

"I open the door to a policy rate reversal in the medium term when the domestic supports to demand fade and when weakness in external sources of demand bite."

"It is important to react in a timely fashion to a US monetary policy shock that causes the UK price level to jump."

"If near-term inflation is the dominant concern, then the activist path addresses that."

Market reaction

GBP/USD, which touched a daily high of 1.2280 earlier in the day, was last seen trading flat on the day at 1.2227.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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