LONDON, Sept 1 (Reuters) – Bank of England interest rate setter Catherine Mann said Britain’s economy had shown signs of stronger growth since the central bank’s last monetary policy meeting when she voted with a minority of policymakers to raise borrowing costs.
Mann told “Kathleen Hays Presents: Central Banking Central”, a podcast, that the labour market had stabilised and inflation had been a little stronger than expected.
“The research is very clear. It’s better (for interest rates) to be a little bit too high and then, of course, correct if necessary,” she said in the interview which was released on Tuesday. “And that’s the underpinnings of the 25 basis-point hike I voted for in the last meeting.”
Financial markets on Tuesday were fully pricing a BoE rate hike by the end of the year but only an approximately 15% chance of a hike at the Monetary Policy Committee’s meeting this month.
(Writing by William Schomberg; editing by David Milliken)
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