BoE’s Mann says tackling inflation will hurt the UK more than others

Bank of England policymaker Catherine Mann has crossed the wires again this month and said the UK labour market inactivity is a drag on the economy yet tackling inflation will hurt the UK more than others.

Earlier in the month, she said her vote in September to raise Bank Rate by 0.75 percentage points reflected her concerns about a weak currency, rising inflation expectations and the boost to household incomes from an energy price cap.

GBP/USD update

Meanwhile, GBP/USD has been pressured on the back of the governors Andrew Bailey’s remarks but managed to rebound despite an FT report that the BoE had suggested to private lenders that it was open to extending its bond purchases beyond Friday’s deadline if market conditions demanded it, citing three sources briefed on the discussions.

However, the report was at odds with comments from BoE Governor Bailey who had initially told publicly told investors hit by the slump in bond prices that the Old Lady will end its emergency bond-buying programme as planned on Friday.

“My message to the funds involved and all the firms involved managing those funds: You’ve got three days left now. You’ve got to get this done,” Bailey said at an event on Tuesday organised by the Institute of International Finance in Washington.

GBP/USD has moved between 1.0923 and 1.1099 so far on the day ahead of the Federal Open Market Committee minutes at the top of the hour.