Bank of England Official Catherine Mann Backs Higher Interest Rates

Bank of England monetary policy committee member Catherine Mann voted for a 25 basis-point interest rate hike during the central bank's most recent meeting. Speaking on the Kathleen Hays Presents: Central Banking Central podcast, Mann stated that the British economy has shown signs of stronger growth and that the labor market has stabilized.

Mann noted that inflation has remained slightly higher than anticipated, which informed her decision to support the rate increase. She argued that "it’s better (for interest rates) to be a little bit too high and then, of course, correct if necessary" than to keep rates too low.

Financial markets currently estimate only a 15% probability of another rate increase during this month's meeting, though they continue to price in a potential hike by the end of the year.