The hope for faster interest rate cuts was fueled today, because a senior bank of England figure argued that inflation will not get out of hand.
Catherine Mann, a member of the rate-stinging monetary policy committee, insisted that a predicted rise in prices would probably just be a 'bump'.
But she made it clear that her opinion was based on a grim assessment of the economy, with a job crunch that looms up after Labor's budget.
Mrs. Mann was seen as one of the leading MPC -Haviken on inflation, but shocked the markets by voting for a reduction in rates by 0.5 percentage points last week.
The committee as a whole supported a reduced point of 0.25 percent in an attempt to breathe new life into the persistent economy of the UK.
In addition to reducing the growth reasons, the bank predicted that inflation will rise again this year, with a peak of 3.7 percent in late summer.
Inflation only came back to the goal of 2 percent of the bank at the end of last year after climbing to historical highlights in most 2022 and 2023.
Catherine Mann, a member of the rate-stinging monetary policy committee, insisted that a predicted rise in prices would probably just be a 'bump'
The updated predictions of the bank suggest that inflation will be relaxed slower than hoped, and the growth is 'weaker than expected'
In a speech in Leeds, Mrs. Mann said that an increase in job reductions and delay when hiring 'will limit the passage will limit wages and prevents effects in the second round.
She added that the increase in the national employers 'contributions of employers (NICs) partially stimulated the delay of jobs, and said that some companies' have 'their expectations of employment growth considerably after the budget announcement'.
She also attributed the market for weakening jobs to 'general economic circumstances, recent increases in the national living wage and striking aspects of the autumn budget, such as the increase in the national insurance policies'.
Cost increases for companies will 'cash flow vulnerability (which) be uncovered will be associated with jobs,' she added.
Mrs Mann said, “Already, the labor market has almost stopped adding jobs to a work almost flat.”
Mrs. Mann said that the prediction rise in inflation will mainly result from increases in water accounts and other factors that 'are not powered by underlying domestic inflationary pressure'.
As a result, the expected increase of this year does not necessarily mean that prices in the wider economy will rise just as much as the head of 3.7 percent annual rate for this summer.
She said: “In a speech last February I said:” Werden did not seduced by the delay in headline inflation. ” In February I say: 'Don't be relieved by the bump … still'. '
Mrs Mann's comments came after the most important economist of the bank, Married Pill, her voice for a half -point reduction in the basic interest rate described as 'hasty' last week.
Mr Pill said that the bank must be 'gradual and careful' when lowering the rates due to possible inflation.
He said on Friday: “Given what we know now, at least for me, the” gradual and careful “would not lead us to hurrying at the more large movements in interest rates, even as some of our colleagues do.”
Mann explained her decision to vote for a semi -point, Mann added: 'It is not just the immediate policy decision that needs to be communicated. Giving insights about the future path is important for the activist policy maker. '
It came as Capital Economics, a consultancy, sharply reduced its growth gursing from 2025 from 1.3 percent to only 0.5 percent.
Paul Dales, Chief UK Economist at Capital Economics, said that it was due to 'higher taxes for companies, a persistent resistance of previous interest rate increases and a softer overseas question'.
