BoE’s Mann: Markets are pricing in too many rate cuts

Bank of England (BoE) policymaker Catherine Mann said on Tuesday that “markets are pricing in too many cuts to rates.“

Additional comments

Changed her vote on rates due to consumers disciplining firms pricing, changing dynamic in labor markets and financial market curve.

Discretionary services inflation has started to soften in last couple of month.

Firms are increasingly cutting hours in labor market.

National insurance rate cuts will add more workers to labor market, will affect wage dynamics soon.

In february i thought makrets were easing too much.

Markets are perhaps a bit too complacent about how long the boe will hold rates.

In some ways the BoE does not have to cut because the market already is.

Market curve in the UK is importantly affected by decisions of ECB and Fed.