Delivering a speech at The Future of Central Banking conference, Mann said inflation had been above target for four years, excluding three months where it was 2% or less in 2024, and was expected to stay above target for another eight quarters until Q2 2027.
The most recent data put inflation at 3.8% in July, up from 3.6% in June, and higher than market expectations for it to be at 3.7%.
The Bank of England now expects inflation to peak at 4%.
Her speech was based on inflation staying persistent and said the clear response to this was tight or tighter monetary policy. However, she said research showed a weak growth outlook, which was usually responded to with a loose or looser monetary policy.
Mann said UK GDP had “remained weak” and was “barely above pre-Covid” levels. She said growth was expected to remain subdued for the next three years.
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The UK economy grew by just 0.4% in June, following two consecutive months of contraction.
“The combination of the two makes the monetary policymaker’s job harder in both decision-making and communication,” Mann said.
She said if inflation remained persistent and above target over the next three years, this would suggest that “monetary policy is not tight enough”.
Mann added: “A more persistent hold on bank rate is appropriate right now to maintain the tight, but not tighter, monetary policy stance needed to lean against inflation persistence persisting.
“However, I stand ready for a forceful policy action – in the form of larger, more rapid bank rate cuts – should the downside risks to domestic demand start materialising.”
Mann voted to hold the base rate at 4.25% at the August meeting, with the vote split at 4:5 for a reduction, resulting in a cut to 4%.
