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.