Catherine Mann, one of the Bank of England’s most hawkish policymakers, said economic activity had strengthened since the Monetary Policy Committee (MPC), the Bank’s rate-setting body, last met. She said the labour market had stabilised and inflation was slightly stronger than expected. Mann was one of three MPC members who voted at the July 30 meeting to raise the Bank Rate by 25 basis points to 4%, while the majority voted 6-3 to keep it at 3.75%. She said rates should be set somewhat too high rather than too low and adjusted if necessary. Financial markets on Sept. 1 fully priced a Bank of England rate increase by the end of the year, while assigning about a 15% chance of a hike at the MPC’s meeting this month. The committee is balancing persistent inflation and fiscal support against uneven economic growth, with UK GDP estimated to have expanded 0.1% in the second quarter of 2026 and public-sector output up about 4.5% since late 2023, while private-sector activity remained weaker.