Hawkish BOE Mann:
– I would rather err on the side of over-tightening
– If I am wrong and inflation & economy drop more significantly, I wouldn’t hesitate to cut rates
– The idea that 3% inflation is ‘close enough’ can’t be the BOE’s guide
– It’s a risky bet that inflation expectations are sufficiently well-anchored and we can wait for core inflation to ease
– We need to prepare for a world where inflation is more likely to be volatile