Bank of England’s Mann favors pausing rate cuts due to labor market resilience

Member of the Bank of England's Monetary Policy Committee Catherine Mann explained her decision to support a pause in interest rate cuts at the regulator's last meeting in an interview with CNBC. She said her stance was driven by a more-resilient-than-expected labor market. 

According to Mann, since economic indicators showed a slowdown but not a sharp drop in activity, she found it necessary to hold rates at current levels. There are signals of a possibly weaker labor market, yet the process is gradual. 

Mann also voiced concerns about rising household inflation expectations and goods prices. At the same time, she noted that US trade policy could lead to goods flows being diverted to the UK and disinflationary pressures.

She highlighted the need to monitor price direction and opposed further rate cuts with no clear signs of easing price pressures from businesses.