BoE mishandled initial response to Iran shock says Mann
Bank of England official Catherine Mann stated the central bank made framing errors regarding the Iran shock. This pushed up UK borrowing costs through higher inflation risk premiums rather than slowing price growth.
Bank of England rate-setter Catherine Mann said the central bank mishandled its initial policy response to the Middle East conflict, lifting borrowing costs across the United Kingdom without subduing inflation. The critique exposes sharp internal divisions over how monetary policy is managed amid geopolitical shocks. Governor Andrew Bailey and other officials previously argued that higher market borrowing costs provided necessary tightening.
