Monetary policy
Macroeconomic policy

Thursday 23 February 2023

The results of rising rates

Expectations, lags and the transmission of monetary policy

Speech by MPC member Catherine Mann

Central bankers around the world have been busy raising interest rates from their historical lows in the face of mounting inflation, with the Bank of England raising the base rate at their last ten MPC meetings. But the big question for policy makers is not just what the impact of those rate rises has been, but what it will be. That lies behind the difficult judgement about whether enough has been done to bring inflation back down to target, which has big implications for living standards and the wider economy.

How big and how swift will the impact of interest rate rises be? Has the long duration of near zero bank rates, along with the recent shocks, changed the received wisdom that rates take 18-24 months to have their full effect?  And, if a slower transmission means a longer period of above target inflation, does this affect inflation expectations?

The Resolution Foundation is hosting a major speech from Bank of England MPC member Dr. Catherine L Mann to debate and answer these questions. Following her speech, Catherine will take part in an audience Q&A, chaired by RF Chief Executive Torsten Bell.

The event will be open for people to physically attend, alongside being broadcast via YouTube and the Resolution Foundation website. Viewers will be able to submit questions to the panel before and during the event via Slido.