Financial institution of England’s MPC (hawk) member Catherine Mann mentioned that the financial institution ought to carefully monitor the results of its quantitative tightening (QT) programme on financial and monetary circumstances, particularly in gentle of the current rate of interest cuts.
Key Quotes
- BE can’t precisely offset excessive long-term charges attributable to QT by slicing Financial institution Price extra.
- Further cuts to quick charges to compensate for QT may run counter to the necessity to purge structural rigidities in UK labour and product markets.
- I anticipate these points will likely be a part of MPC concerns earlier than the September QT determination.
- Influence of QT is a extra salient situation now that the BoE is slicing charges.
