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Companies will be struggled to raise prices this year as consumers are exposed to job losses and spending, according to the subject of banking bank prices, arguing that the central bank should have reduced interest rates last week.

Catherine Mann said that she voted in favor of a half -point Jumbo’s drop last week due to the weak job market and the slowdown in demand for consumers that weaken the power of pricing companies and thus inflationary pressures.

Man was formerly the most striking policy maker at the Bank of England, and opposed last year’s price discounts due to the constant risk of inflation.

Man said that the conditions for the application are a little weaker than it was – and I changed my opinion on that. interview With financial times.

“I can see the prices very close to [2 per cent] Multi -goal [levels] Next year, she added, warning that data indicates a “non -linear” decrease in employment.

Man, the external member of the Monetary Policy Committee of the Bank of England, has distanced itself from the “gradual” approach of the Central Bank to reduce prices, saying that there is a need for “noise breach” and clarification of traders need easier financial conditions.

“To the extent that we can connect what we think is the appropriate financial conditions for the UK’s economy, the biggest step is a superior communication device, in my opinion.”

On Thursday, the Bank of England announced a reduction of a quarter of a point to 4.5 percent, but Man and its colleague Swati Dengra called for a larger and a half reduction.

On Friday, HUW Pill, the Senior Economist at the Bank of England, distanced this approach, saying that he will not “rush” to significant price cuts.

While DHINGRA was for some time seeking to reduce faster than the largest part of MPC, the mann was until recently at the other end of the spectrum.

In 2023, it called for raising prices to 5.5 percent-after a quarter of a point above the high point after increasing inflation.

The MPC’s majority decision was opposed to reducing the main rate of 5 percent in August, and was the only discount for the November step to reduce it to 4.75 percent.

Despite her change in her position, Man warned that last week her vote reflects her desire to change one -time step instead of a long -term series of continuous price discounts.

The Bank of England expects to receive consumer inflation to 3.7 percent in the second half of this year, driven by factors that include high energy prices.

Man said that the central bank needs to ensure that this increase does not lead to companies ’approval to accept high wages requirements, which may hinder inflation.

“I must make sure that these effects in the second round do not appear. Man said,” I will need more data to issue this ruling. ”

However, Man said she expects to weaken the UK consumer to “the lack of pricing power.”

She said that the soft demand conditions “begin to bite” and undermine companies’ ability to pass by increasing costs in regions, including food, hospitality and holidays.

She said that companies that are likely to be the costs of employment that are likely to be raised by the government’s decision to raise the minimum wage, and the national insurance contributions to the employer have at the same time showing the intentions of employment “that have been greatly changed.”

She pointed to “non -written amendments to the demand for employment,” she said. “Workers may want to increase these wages, but companies will not be able to pay, because they will not be able to pass them.”

“If there is an unprecedented amendment in the employment, this causes less demand due to the employment of fewer people. Then this leads to a moderate pricing force for companies,” Man added.

The weakest demand was a reflection of the constant caution between consumers despite the increase in real income, with the increased modified wages that were modified by 2.5 percent from September to November last year.

Last year, Man said she was suggesting that high savings were a “dry powder” that could nourish stronger consumption, but this was not achieved.

A monthly study conducted by KPMG and the Confederation of Employment and Employment on Monday indicated Vulnerability In demand for employees since August 2020, when the UK wrestled with Covid’s pandemic.