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BOE’s Mann: I would rather err on the side of over-tightening

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  • If I am wrong and inflation and economy drop more significantly, I wouldn’t hesitate to cut rates
  • It’s a risky bet that inflation expectations are sufficiently well-anchored and we can wait for core inflation to ease
  • We need to prepare for a world where inflation is more likely to be volatile
  • The idea that 3% inflation is ‘close enough’ can’t be the BOE’s guide

These are hawkish comments but that’s not a surprise from Mann.

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