BOE Official Admits Mistakes in Response to Iran War Shock

Catherine Mann, an interest rate-setter at the Bank of England, has admitted that the central bank made errors in its response to the shock from the Iran war.

Mann stated that the rise in market interest rates after the outbreak of the war reflected expectations of higher inflation and possibly a 'monetary policy uncertainty premium.'

This risk premium was due to what Mann described as mistakes in how the Bank of England framed its policy response to the shock.