(Reuters) – Bank of England interest rate-setter Catherine Mann said companies will struggle to raise prices this year as consumers are hit by job losses and spending softens, the Financial Times reported on Tuesday.
Price increases this year will be consistent with the bank’s target, Mann said. The BoE’s target for inflation is 2%.
Earlier this month, the Bank of England cut interest rates by a quarter-point and halved its 2025 growth outlook, a blow for Finance Minister Rachel Reeves, who is pushing to speed up the economy.
The bank had also said inflation would be almost double it target for this year.
(Reporting by Nilutpal Timsina in Bengaluru; Editing by Tom Hogue)
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