Overview

• 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.