Catherine Mann, a rate-setter at the Bank of England, has suggested that current monetary policy is impacting inflation more quickly than traditional economic theories suggest.
Mann highlighted that rate decisions can influence firms' pricing strategies without the usual 18 to 24-month delay associated with monetary policy. These comments indicate a more immediate effect of interest rate adjustments on the economy, potentially influencing future monetary policy decisions.
The Bank of England's approach may reflect a change in understanding the speed at which monetary policy can impact inflationary pressures in the current economic environment.