BOE official: Trump will increase inflation risks, we must hold interest rates

The Bank of England should keep interest rates on hold until the upside risks to inflation, including the fallout from the election of Donald Trump as US president, have dissipated, senior official Catherine Mann said today.

Mann told the annual conference of the Association of Professional Economists in Britain that global shocks have often played a bigger role than domestic pressures in driving up inflation in Britain.

She explained that recent political developments on the other side of the Atlantic have not made the scenario of trade disruption less likely, which would have implications for output and inflation in Britain.