BoE's Mann defends restrictive monetary policy as 'somebody has got to pay for volatility'

Mann voted to hold last week

Member of the Bank of England’s Monetary Policy Committee (MPC) Catherine Mann has maintained that the UK central bank must remain vigilant in its outlook in order to deal with uncertainty, volatility and risk premia.

Speaking at the BoE watchers' conference in London on Monday (12 May), Mann was questioned about the use of restrictive language by rate setters on Threadneedle Street.  "When will we stop using the restrictive language? When it is appropriate," she argued.  BoE moving closer to 'restrictive' fiscal territory with cancelled sale of long-dated bonds The central banker spoke about her views on r-star, the value that represents the interest rate that would prevail in an economy when it is operating at its potential level of output with stable inflation and full employment, also known ...