BoE’s Mann: UK inflation heading to 7.25% in April

The Bak of England’s Catherine Mann said that UK inflation is heading to 7.25% in April.

She voted for a 50 basis point rise in interest rates this month because she saw little sign of an easing in the public’s price expectations, which risk causing inflation to stay too high for too long.

Mann was one of four Monetary Policy Committee members to vote to raise interest rates to 0.75% from 0.25% this month, rather than the increase to 0.5% backed by the majority of the committee.

Mann indicated that companies and workers will both get 5% wage increases in 2022 and that 5% wage rise expectation show `embedded’ inflation.