Bank of England policymaker Catherine Mann said on 6 October that InflationInflation refers to a sustained rise in the general price level that reduces the purchasing power of money. The term belongs in Level 7 because it helps connect macro conditions...Read More above the Bank’s 2% target had become embedded in Britain. Speaking at a TS Lombard conference, she warned that inflation approaching 4% around the turn of the year could influence annual wage negotiations and entrench price pressures further. Her comments present a policymaker’s assessment of inflation RiskRisk is the possibility that the actual outcome of a trade, investment, or financial decision differs from the expected outcome and causes a loss or other unwanted result. Risk...Read More, rather than a new interest-rate decision. The distinction matters for traders assessing how wage settlements could shape the UK monetary-policy outlook.
Bank of England policymaker Catherine Mann warned that UK inflation could become further embedded in wage negotiations early next year. She is particularly concerned that inflation could reach around 4% near year-end, increasing the risk of persistent price pressures.
