Burr David Milliken
LONDON (Reuters) – UK households, firms and financial markets remain confident that the Bank of England will bring inflation back to its 2% target, central bank official Catherine Mann said on Wednesday, after officials on Wednesday showed the inflation rate at a 10-year high. .
Bank of England President Andrew Bailey said on Monday that he was concerned last month that markets would lose confidence in the monetary authority’s commitment to combating inflation, which in turn led him to signal that an interest rate hike was imminent.
The Bank of England did not raise borrowing costs at its November meeting, surprising investors because they thought Bailey had hinted a rally was imminent. But financial markets expect interest rates to rise next month, after strong employment data and a jump in inflation to 4.2%.
Mann, who joined the Bank of England’s monetary policy committee in September, said at an online event hosted by JPMorgan that he expects high inflation to be temporary.
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