Bank of England (BoE) Monetary Policy Committee member Catherine Mann said on Tuesday that she is in favor of a neutral rate at the "higher end" of the 3% to 3.50% range. She stressed the BoE must maintain policy rate discipline and remain restrictive to achieve price stability.
The BoE cut rates by 25 basis points to 4.5% last week, with Mann voting for a 50-point cut. She argued that she wanted to "cut through the noise" by delivering a bigger decrease and keeping the policy restrictive in the longer run. She pointed out that there are still some "structural impediments" to sustainably keep inflation at the 2% target level.
