Catherine Mann, the Bank of England’s policymaker, described the latest UK inflation data as “good numbers”, although progress in underlying inflation remains limited.
Headline inflation fell to 3.0%, the lowest in almost a year, but service sector price pressures remained strong, suggesting the inflation challenge had not fully abated.
Mann also voiced concern over rising unemployment, saying the central bank was getting closer to striking a balance between controlling inflation and supporting employment.
She was cautious about the 2% inflation forecast in the coming months, questioning whether it was truly sustainable or just temporary.
At the latest meeting, Mann voted by a 5–4 majority to keep rates on hold, although she acknowledged that the time for a cut was approaching.
Financial markets are now pricing in around an 80% probability that the BoE will deliver a 25 basis point rate cut in March, reflecting expectations of near-term policy easing.
