Bank of England's Catherine Mann: Dovish pivot is not close

Monetary conditions still too loose

Catherine Mann, a member of the Bank of England's monetary policy committee, has talked down the chances of any near-term shift to rate cutting.

In a relatively hawkish speech delivered at policy think tank the Resolution Foundation today (23 February), Mann explained that if markets price in a shift in rates policy too early or enthusiastically, it could stoke inflation and force the central bank to postpone any pivot. She said financial conditions are still not much tighter than average historical standards, despite the Bank's rate rises. Equities investors are playing a major role in this, she said.  "The positive contribution of a falling equity risk premium implies that an improving outlook is not enough to explain equity...