Catherine Mann, an external member of the Bank of England’s Monetary Policy Committee (MPC), has advocated for a “bolder move” in UK monetary policy, suggesting a significant interest rate cut followed by a period of stability. Her views provide insight into the diverse opinions within the committee as Governor Andrew Bailey acknowledges global trade uncertainties.
Mann’s preference for decisive action aims to send a clearer signal about the Bank’s stance. She previously voted for a half-point reduction in February but did not support the committee’s subsequent quarter-point cut, reinforcing her belief in more impactful adjustments.
While the MPC grapples with the global trade environment, Governor Bailey continues to anticipate a decline in UK wage growth. This expected easing of inflationary pressures from wages is a key domestic factor that could influence the committee’s decisions on future rate cuts, regardless of the chosen magnitude.