London Daily

Focus on the big picture.

Central banks face tougher task reining in price rises, BoE's Mann says

Central banks face tougher task reining in price rises, BoE's Mann says

Central banks face a tougher time controlling inflation than in the recent past, and will need a clear understanding of businesses' pricing decisions to do so, Bank of England policymaker Catherine Mann said on Thursday.
Mann, speaking at an event in Washington hosted by the Peterson Institute for International Economics, said the "Great Moderation" in inflation appeared to have ended.

Instead, there was now much greater volatility in exchange rates and in inflation itself. She also saw more variability in prices across different types of goods and services, depending on how exposed businesses were to various cost pressures.

"We may well be entering a very different regime where we are going to have to work much harder as central banks," she said.

The "Great Moderation" - a period of low inflation and low interest rates in Western economies between the late 1990s and 2020 - has been attributed to a range of factors including central bank independence and cheap imports from China.

Mann said one main benefit of a central bank inflation target was to force policymakers to explain clearly what was driving inflation.

Central banks which could best explain the recent surge in inflation were most likely to be able to control it, she added.

"It is not who has the best (inflation) target, but who explains that best which is going to determine to what extent we are going to be able to get back to our objectives," Mann said.

"I think it's going to be hard to do that, harder than the last 20 years," she added.

Looking at details of how businesses set prices was likely to be a productive angle, she said.

Last year Mann voted for a faster pace of rate rises than the majority on the Bank of England's Monetary Policy Committee, but voted in line with the consensus this week for a quarter-point increase to 4.25%.
Newsletter

Related Articles

London Daily
0:00
0:00
Close
Russia's Electronic Warfare Neutralizes Western Weapons in Ukraine
Trump Challenges Biden to Debate and Golf Match
Macron Accuses Israeli Minister of Election Interference
US Senator Highlights Weaknesses in Western Military Industry During Ukraine Conflict
George Clooney Urges Biden to Withdraw from Presidential Race
Political Shift in the UK: A Detailed Analysis of Labour's Victory and Future Prospects
Viktor Orbán's Peace Mission: A Diplomatic Controversy in the EU
India Advocates Peace and Prosperity: PM Modi's Speech in Austria
New UK PM Keir Starmer Reaffirms Strong Support for Ukraine at NATO Summit
Spain PM Pedro Sanchez Denounces Double Standards on Gaza at NATO Summit
UK Police Arrest Suspect in Crossbow Attack After Three Women Killed
Sunita Williams Safe on ISS, to Address Earth on July 10
Biden Affirms Commitment To Presidential Race
France Faces Political Turmoil and Airport Strikes Ahead of Paris Olympics 2024
Putin Hosts PM Modi for a Private Meeting
TSMC: The Taiwanese Chip Giant Valued Over $1 Trillion
Boeing Pleads Guilty Over 737 MAX Crashes
2024 Predicted to Be World's Hottest Year
Iran's President-Elect Masoud Pezeshkian Reiterates Support for Hezbollah
White House Denies Biden Being Treated for Parkinson's Disease
Biden to Meet New UK Prime Minister Keir Starmer
Biden Insists on Continuing Presidential Race Amid Criticism
UK Defence Minister Pledges Enhanced Support to Ukraine
French Prime Minister Gabriel Attal Resigns After Election Setback
Macron Faces New Political Challenges Despite Election Relief
France's Far-Right Falls Short in Parliamentary Elections
Key Figures in France's Left-Wing New Popular Front Bloc
England Reaches Euro 2024 Semifinals After Penalty Shootout Win
Rishi Sunak Apologizes After Historic Tory Defeat
Voter Discontent in Recent UK and French Elections
Trump was recorded attacking Biden: "I kicked the old pile of shit"
Understanding the MRP Method in UK Elections
US Officials Resign Over Biden's Gaza Policy
First-Time Immigrant Voters Aim to Influence UK Elections 2024
Reform UK Receives Major Donations from Brexit Campaign Group
Tata Steel Strike Called Off, Paving the Way for Crucial Talks
Sir Keir Starmer's Acceptance of Substantial Gifts from UK Donors
New Zealand Introduces Law to Make Tech Giants Pay for News
NASA Astronauts Stranded in Space Due to Boeing's Starliner Issues
OpenAI and Microsoft Sued for Copyright Infringement
Starmer Vows to Renegotiate Brexit Deal Amid Far-Right Rise in France
Monster Hurricane Beryl Hits Caribbean as Category Five Storm
EU Charges Meta with Breaching Antitrust Rules
Biden's Debate Performance Unites Democrats and Republicans
Prison Officer Faces Court Over Inmate Sex Video
Jude Bellingham's Iconic Euro 2024 Goal: A Historic Moment for England
Campaigners Push for Emergency Uplift Visa for Palestinians Escaping Gaza Conflict
French Elections: Battle to Thwart Far-Right Takeover
Supreme Court Grants Trump Partial Immunity, Delays Trial
China Criticizes US Restrictions on AI Investments
×