BoE's Mann: "I am confident that if outturns – especially in expectations – are unfavorable to the underlying inflation process, an activist move can bring inflation expectations and outcomes toward the two percent target."
Newsquawk European Market Wrap - 2nd July 2026
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BoE's Mann: "I am confident that if outturns – especially in expectations – are unfavorable to the underlying inflation process, an activist move can bring inflation expectations and outcomes toward the two percent target."
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- "Given the seasonality of wage negotiations and their dependence on previous inflation and inflation expectations, data outturns (including the expectations for one-year-ahead) in the second half of this year are particularly important for my future decisions"
- "Looking ahead, the risk is that wage pressures are deferred rather than dissipated, particularly if future pay settlements – including in these more collectively bargained segments – are set against the backdrop of higher realized inflation and elevated expectations in the second half of this year. "
- "The trade-off between inflation and activity has re-emerged" (reiteration)
- "While the most recent observation of the Citi/YouGov measure of household inflation expectations has decreased from its April peak, it remains within the region of these non-linear dynamics, and both short- and long-term expectations remain elevated relative to historical averages and their pre-Iran war levels."
- Impact of energy bills and economic slack underscore the pertinence of fiscal policy in getting back to target.
- Prepared to tighten if the inflation outlook deteriorates.
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