I am on the lookout for it, but I don’t see it becoming a spiral,” Mann told lawmakers. The U.S. economy has rebounded faster than Britain’s and Mann said the Federal Reserve was likely to raise interest rates before the BoE. Finance markets currently price in a first rate rise by the BoE – to 0.25% from 0.1% – by June next year. Although she did not favour ending BoE stimulus early, Mann questioned the effectiveness of bond purchases in boosting the real economy, something that grew during by her time at Citi. Mann raised doubts about the usefulness of negative interest rates, given their knock-on impact on bank profitability and household saving.

Source: MetroXpress July 19, 2021 17:37 UTC