BOE's Mann: unemployment worries push British households to save money

Concerns about unemployment and rising utility bills are prompting British people to save more. Meanwhile, the country's economic growth is being held back by savings rates, which remain much higher than before the pandemic. Catherine Mann, a member of the Bank of England's Monetary Policy Committee, reported this.

According to her, cautious consumer behavior has led to a significantly slower growth in some sectors such as retail and hospitality.

Mann's comments indicate that even the most hawkish policymakers at the Bank of England are concerned about the sustainability of the British economy, Reuters says. Worries among the regulator's members have intensified in recent months, following a decline in manufacturing activity in the spring and a sharp deterioration in the labor market.

The agency notes that consumer hesitancy is considered the reason for the country's sluggish economic growth in recent years. The household savings rate was nearly 11% in the first quarter of 2025, significantly higher than levels seen before the pandemic.