Not convinced near-term deceleration in headline inflation will continue

Bank of England (BoE) policymaker Catherine Mann, who voted in favor of a rate hike in the last policy meeting, said on Thursday that she is not convinced that the near-term declaration in headline inflation will continue, per Reuters.

Mann noted that she is worried that a Red Sea price shock could be incorporated into corporate pricing swiftly and argued that financial conditions in the UK eased “too much.”

Market reaction

These comments failed to trigger a noticeable reaction in GBP/USD. As of writing, the pair was down 0.25% on the day at 1.2593.