The Bank of England has reappointed Dr. Catherine L Mann to the Monetary Policy Committee (MPC).
A spokesperson said: “Dr. Catherine L Mann was appointed to the MPC on 1st September 2021 for a three-year term due to end on 31st August 2024. Following her appointment for a second term, Dr. Mann will continue to hold the post until 31st August 2027.”
It added: “Dr. Catherine L Mann was reappointed to the MPC following consideration by the Chancellor of a number of factors including the diversity of the current committee and its balance of skills and experience.”
Newspage asked financial services experts what this could mean for interest rates in 2024. Their views are below.
Reaction:
Lewis Shaw, owner and mortgage expert at Shaw Financial Services:
“This is the one thing we didn’t want to happen. Dr Mann’s extension sends a clear signal that, unfortunately, rates may be higher for longer.
“Dr Mann has consistently been in favour of increasing the base rate and voted at the past five meetings to increase it to 5.5% despite economic data pointing towards a struggling economy and evidence of real harm to mortgage holders.”
Stephen Perkins, managing director at Yellow Brick Mortgages:
“This is disappointing given how instrumental she has been with her voting on the appalling handling of the economy by the Bank of England.
“Based on performance, few of the Monetary Policy Committee, if any, should be reappointed.”
Graham Cox, director at SEMH Self-Employed Mortgages:
“The reappointment of Dr Mann probably doesn’t change much.
“She voted for a base rate hike at last month’s Bank of England Monetary Policy Committee meeting, but has since stated her decision was ‘not easy’, suggesting her position could soon change.
“I suspect the argument for further rate increases will weaken considerably if, as expected, inflation falls to its 2% target in the next month or two.”
Charles Breen, founder at Montgomery Financial:
“The reappointment of a renowned hawk will hamper the financial horizons for millions of ordinary Brits.
“To repeatedly vote for increasing interest rates despite the harm it is doing to millions of Brits is a shocking.
“The Monetary Policy Committee were asleep at the wheel when they drove us to the highest inflation levels in over 40 years, yet the people who brought us to this disaster are rewarded with another cushy term. It’s absolutely outrageous.”
