Bank of England: Markets are pricing in too many rate cuts – Catherine Mann

The head of monetary policy at the Bank of England (BoE), Catherine Mann, said on Tuesday that “markets are pricing in too many rate cuts“.

Additional comments

He changed his vote on rates due to consumers disciplining companies' prices, changing labor market dynamics and the financial market curve.

Discretionary services inflation has begun to soften in the last two months.

Companies are cutting more and more hours in the labor market.

Cuts in social security contributions will add more workers to the labor marketwhich will soon affect salary dynamics.

In February I thought the markets were relaxing too much.

Markets perhaps too complacent about how long the BoE will keep rates on hold.

In a way, the BoE doesn't have to cut because the market is already doing so.

The market curve in the United Kingdom is greatly affected by the decisions of the ECB and the Fed.