BoE's Mann: Some businesses expect to raise wages by 6-7% to retain staff

Bank of England (BoE) policymaker Catherine Mann said on Thursday that her focus on tighter policy reflects concerns about the possible non-linear nature of backward-looking inflation expectations, as reported by Reuters.

"We cannot be comfortable that inflation expectations are consistent with the 2% target," Mann added and noted public expectations for inflation next year are way above 2%. She further elaborated by saying that some businesses expect to raise wages by 6-7% to retain staff.

Market reaction

GBP/USD showed no immediate reaction to these comments and was last seen posting small daily losses at 1.2030.