LONDON (Reuters) – Britain is still facing strong domestic drivers of inflation on top of the impact of surging international energy prices and the after-effects of the coronavirus pandemic, Bank of England interest rate-setter Catherine Mann said on Thursday.
“There still is a lot of momentum in the underlying drivers, domestic drivers of inflation,” Mann said during a panel discussion organised by the American Enterprise Institute, a think-tank.
“So the Bank Rate rise that we announced today, as well as the potential for future increases, it is because the dynamics of domestic inflation are still quite strong.”
Earlier on Thursday, the BoE raised its benchmark rate by three quarters of a percentage point to 3.0% as it sought to combat risks from an inflation rate running above 10%.
(Writing by William Schomberg; Editing by Sachin Ravikumar)