The member of the MPC (Falcon) of the Bank of England, Catherine Mann, said that the bank should closely monitor the effects of its quantitative hardening program (QT) on the monetary and financial conditions, especially in the light of the recent cuts of interest rates.
Outstanding statements
- The BE cannot compensate exactly the high long -term rates caused by the QT by cutting the bank rate more.
- Additional cuts to short rates to compensate for QT could go against the need to purge structural rigidities in the United Kingdom labor and products.
- I hope these issues are part of the MPC considerations before the decision on September QT.
- The impact of QT is a more relevant issue now that the BOE is cutting rates.
Source: Fx Street
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