Bank of England (BoE) policymaker Catherine Mann said on Tuesday, “I think more needs to be done with rates.”
Additional comments
“Concerned about the persistence of core inflation.”
“Weak pound is significant for inflation.”
“There has been quite a hawkish tone from Fed and ECB.”
“But the question is how much is priced into sterling.”
“In comparison to recent increases, property price drops are minor.”
“I believe the housing market is in the process of recovering rather than continuing to fall.”
“I am concerned about the UK economy's supply side.”
When asked about Brexit, Mann said, “the real source of concern is the uncertainty that affects business investment.”
“QT is currently operating in the background.”
“Altering the inflation target is more difficult when you're above it.”
Market reaction
Despite the hawkish comments, the GBP/USD is testing lows just above 1.2000, down 0.15% on the day.
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