BoE needs to lean against rising price pressures - Mann



LONDON, Jan 21 (Reuters) - The Bank of England needs to lean against inflation pressures and stop expectations of higher price growth from getting entrenched in medium-term wage and price decisions, BoE policymaker Catherine Mann said on Friday.

"Going into 2022, current price and wage expectations coming from the (BoE's) DMP survey are inconsistent with the 2% target, and if they are realised in 2022 are likely to keep inflation strong for longer," Mann said.

"In my view, the objective for monetary policy now should be to lean against this 'strong-for-longer' scenario," she added in a speech to be given to the OMFIF central banking think tank.

Investors see an 80% chance of the BoE raising interest rates again to 0.5% on Feb. 3, having increased them from 0.1% to 0.25% last month when it became the first major central bank to raise borrowing costs since the pandemic.

British consumer price inflation hit a nearly 30-year high of 5.4% in the 12 months to December and many economists think it will go higher than the BoE's most recent estimate of a peak of around 6% in April.
Reporting by David Milliken Editing by William Schomberg

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