BoE's Mann: Monetary policy cannot offset cost-push shocks from energy prices

Bank of England (BoE) Monetary Policy Committee (MPC) member Catherine Mann said on Wednesday that the trade off between inflation and activity is becoming “increasingly stark,” per Reuters.

“Tighter policy stance could trigger volatility as new actors unwind positions, potentially leading to tighter domestic financial conditions than intended,” Mann added and argued that the monetary policy by itself cannot offset cost-push shocks from energy prices.

Market reaction

GBP/USD remains under modest bearish pressure following these remarks and was last seen losing 0.2% on the day at 1.3515.