A post by @FirstSquawk on X.

Bank of England policymaker Catherine Mann said the central bank is now operating in a world of more robust second-order effects, signaling that inflation pressures may be more persistent and self-reinforcing than previously assumed. The remark points to heightened concern that initial price shocks are feeding through into wage-setting and price-setting behavior, complicating the path back to target. It matters because such language typically supports a more cautious stance on rate cuts, keeping borrowing costs higher for longer. Traders will watch upcoming U.K. wage and services inflation data, along with further BOE commentary, for confirmation that this more entrenched dynamic is showing up in the numbers.