Bank of England MPC member Mann said she is prepared to take “active” rate hikes
if inflation expectations and other price signals do not improve later this
year. She backs keeping Bank Rate at 3.75% for now but warned inflation could
become embedded. Mann said she will watch H2 data closely to prevent rising
prices feeding into wage settlements and inflation expectations. Energy price
moves, profit‑margin shifts and the backdrop for 2027 wage negotiations will be
critical in judging whether current cost pressures embed. “I believe, if
outcomes are adverse for the inflation process, active rate hikes can push
inflation expectations and actual outcomes back toward the 2% target,” she said.
