Bank of England Split on Interest Rate Cuts Amid Inflation Concerns

Diverging views among policymakers highlight debate over prioritizing inflation control or economic growth.

Bank of England policymakers are divided on the pace and extent of interest rate cuts as inflation remains above target.
Megan Greene argues for maintaining higher interest rates to combat persistent inflation, citing strong wage growth and price pressures.
Catherine Mann advocates for sharper rate cuts to address low growth and rising unemployment, signaling a shift from her previous stance on inflation control.
Chief Economist Huw Pill supports a cautious approach to rate reductions, emphasizing the need to address underlying inflationary pressures tied to supply issues.
The UK economy faces challenges, including flatlining growth, weak productivity, and constrained supply, complicating monetary policy decisions.