Overview

• Speaking at a Resolution Foundation event, MPC external member Catherine Mann argued that keeping policy restrictive for longer is needed to return inflation to 2% and support consumer spending.
• She acknowledged the stance may seem counterintuitive for growth but said elevated inflation and expectations require continued restraint.
• The Bank of England held Bank Rate at 4% in September, and Governor Andrew Bailey cautioned the UK is not out of the woods on inflation.
• UK CPI inflation stood at 3.8% in August, nearly double the 2% target, while food and drink prices have risen faster for five consecutive months.
• Mann noted UK prices are about 30% higher than before the 2021–22 surge, saying households endured "12 years of inflation in a little over two years," and she urged sticking with restrictiveness as the MPC remains split on easing ahead of November.