New BOE MPC member Mann: We must not be premature with tightening monetary policy
Catherine Mann is the new external MPC member
Former Citi global chief economist is offering up some early comments on her outlook after being appointed to a six-year term at the MPC on June 22.
- Inflation forecasts in 2023 and 2024 show a dramatic fall
- After financial crisis there were also concerns about rising inflation and debt sustainability. Lessons show there was never a recovery of lost GDP
- I do not see an inflation spiral
- We must not be premature with tightening monetary policy
- Most forecasts do not foresee labor market tightness matching GDP growth
- Price momentum has come off the top
- We don't want to be in a situation again with permanent losses seen after the global financial crisis
She sounds like another general fighting the last war.