Bank of England member calls for higher interest rates

By the Editorial Team · Wednesday, October 7, 2026

Bank of England Monetary Policy Committee member Catherine Mann has reiterated her call for higher interest rates to combat persistent inflation that remains above the 2 percent target. Her position highlights ongoing internal disagreements as the Bank weighs the risks of tightening monetary policy against potential impacts on economic growth and financial stability.

A member of the Bank of England’s Monetary Policy Committee has renewed her call for higher interest rates amid persistent inflationary pressures. Catherine Mann, an external committee member since 2021, argued that inflation has become deeply entrenched in the economy and that a tighter monetary stance is necessary to bring it under control.

Speaking at an event organized by TS Lombard, Mann highlighted that inflation has consistently remained above the Bank’s 2 percent target throughout her tenure on the committee. She emphasized the importance of raising borrowing costs to prevent inflationary expectations from becoming embedded in the economy.

Last month, the committee decided to hold the base interest rate steady at 3.75 percent. Mann was among a minority who voted in favor of increasing the rate by 25 basis points. The majority of the committee opted to maintain the current level, signaling a more cautious approach amid concerns about economic growth and financial stability.

Mann’s stance reflects ongoing debate within the Bank of England about the appropriate policy response to an inflation rate that, while having eased somewhat from recent peaks, remains elevated. Advocates for tighter policy argue that higher interest rates are essential to curb price pressures and support long-term economic stability. Critics caution that further rate hikes could dampen growth and pose risks to the recovery.

The Bank of England has been gradually raising interest rates since late 2021 in an effort to bring inflation back to target. However, inflation has persisted above target levels for an extended period, driven by a combination of supply chain disruptions, rising energy costs, and strong consumer demand.

Mann’s comments underscore the challenges facing policymakers as they balance the need to control inflation against the potential impact of higher borrowing costs on households and businesses. The Bank is expected to continue monitoring economic data closely in the coming months to inform its policy decisions.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.