She added that the Bank of England’s “gradual” approach, which included four quarter-percentage point rate hikes this year followed by a half-percentage point increase last month, had failed to curb rates, an important driver of inflation in the medium term.
Mann said in a speech at the University of Kent: “Fast and strong monetary tightening, is the highest degree of a gradual approach.”
Asked if the bank should consider raising interest rates by three-quarters of a percentage point at its September 15 meeting, Mann replied: “An important question.”
The Bank of England predicted last month that high inflation, driven in large part by sharp increases in natural gas prices since Russia’s invasion of Ukraine, would cause a recession later this year.
“If current wholesale energy prices are allowed to be passed on to households and businesses, this will lead to tremendous pain for millions over the course of the winter months,” Mann said.
Liz Truss, who was declared leader of the ruling Conservative Party on Monday, said she would announce tax cuts and additional support for energy bills once she is formally appointed as prime minister.
