BoE's Mann: Some businesses expect to raise wages by 6-7% to retain staff

Eren Sengezer FXStreet

Bank of England (BoE) policymaker Catherine Mann said on Thursday that her focus on tighter policy reflects concerns about the possible non-linear nature of backward-looking inflation expectations, as reported by Reuters.

"We cannot be comfortable that inflation expectations are consistent with the 2% target," Mann added and noted public expectations for inflation next year are way above 2%. She further elaborated by saying that some businesses expect to raise wages by 6-7% to retain staff.

Market reaction

GBP/USD showed no immediate reaction to these comments and was last seen posting small daily losses at 1.2030.

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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