Mann Urges Bank of England Rate Hike to Stem Inflation Risks

Bank of England interest rate-setter Catherine Mann has called for a hike in rates to manage inflationary risks. She believes that financial conditions are still not tight enough, and policymakers cannot rely solely on market shifts. According to Mann, the UK central bank must act at some point after markets ramped up bets on officials increasing borrowing costs as many as four times by next summer.

Mann's comments come as markets have increased their expectations of interest rate hikes. This has led to a surge in bets that the Bank of England will raise rates multiple times by next summer, with some predicting up to four hikes. Mann argues that this is not enough and that a hike is necessary to maintain credibility.