Catherine Mann, a member of the Bank of England Policy Committee, said at the end of Thursday that gradual interest movements no longer send clear signals to unstable financial markets, and major changes are now needed to “cut” noise for the good of the economy on Bloomberg.

Key quotes

Monetary policy must navigate the gritty financial markets, shock economies and sticky expectations.

Larger cuts, such as those I voted for during the last meeting, cut these turbulence, with a purpose of more effectively transmitting the attitude of politics and impact on the economy.

Incoming data on the development of wages and prices and the annual, above all, expected trajectories are not yet consistent with the goals.

I emphasized the need to maintain a restrictive banking rate for longer to discipline these prejudices up – and I still believe in it.

The need to remain restrictive is particularly vital.

The founding assumption for a gradual approach to monetary policy is no longer vital.

Market reaction

At the time of writing this text, GBP/USD trades 0.07% higher on trade day at 1.2887.