The emergence of the Omicron variant of coronavirus could mean inflation remains high for longer than expected if it prevents consumers switching their spending from goods to services and prolongs disruption to global supply chains, according to a Bank of England policymaker.
Catherine Mann, who joined the BoE monetary policy committee in September, has so far been one of its more dovish voices and voted with the majority to leave interest rates on hold at 0.1 per cent in November, despite surging inflation.
But her comments on Tuesday, at an event hosted by Barclays, suggest she shares some of the concerns of other MPC members that inflation could remain above the BoE 2 per cent target for longer than previously expected if the central bank fails to tighten policy.