BoE's Mann says it is better to err towards over-tightening rates

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BoE's Mann says it is better to err towards over-tightening rates
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LONDON, Sept 11 - Bank of England policymaker Catherine Mann said on Monday that it was too soon for the BoE to stop raising interest rates, and that it was better for the central bank to err on the side of raising them too high rather than stopping prematurely.

"In my view, holding rates constant at the current level risks enabling further inflation persistence," she added. Her comments struck a different tone to BoE Governor Andrew Bailey, who last week said the central bank is"much nearer" to ending its run of interest rates increases. "If I am wrong, and there are excess negative effects to the real economy, it is an easier task to rectify as compared to regaining control over inflation," Mann said.

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