The Bank of England's head of economic policy and member of the Monetary Policy Committee (MPC), Catharine L. Mann, made headlines on Thursday when she spoke about her outlook at an economic policy conference at the National Association for Business Economics.
Main statements
- The latest Gross Domestic Product (GDP) data confirms that the second half of 2023 was a soft patch.
- The BOE needs at least one more inflation data before deciding its next moves.
- UK unemployment rate remains 'fairly low', labor market remains tight.
- Wage growth is slowing, but the pace remains “challenging” for the Bank of England's Consumer Price Index (CPI) target.
- GDP data is a rearview mirror, Purchasing Managers' Index (PMI) and other forward-looking data look good.
- Goods inflation has slowed in all advanced economies.
- The sources of inflation decomposition will be important in political decisions.
- Goods prices may be deflationary at some point in the UK, but not lastingly.
- Services inflation in the UK is much stiffer than in the EU or the US.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
