Investing.com -- Bank of England (BoE) policy maker Catherine Mann said on Wednesday her decision to maintain borrowing costs last week, a shift from her previous vote for a significant 50-basis point cut in February.
She attributed this change in stance to the resilience of Britain’s labor market, which has proven stronger than anticipated.
Mann noted that while there have been signs of a decelerating labor market, the adjustment has not been drastic or abrupt. This observation was shared during her interview with CNBC.
In addition to labor market dynamics, Mann expressed concern over increasing household inflation expectations and the rise in goods price inflation.
These economic factors played a role in her decision to vote for maintaining the status quo on borrowing costs.
On May 8, the BoE reduced its benchmark Bank Rate by a quarter of a percentage point.