Bank of England's Mann Warns Leveraged Gilt Investors Could Trigger Volatility

According to Bank of England Monetary Policy Committee member Catherine Mann in recent remarks, leveraged investors in British government bonds (Gilts) pose a risk of triggering market volatility. Mann highlighted that new participants have emerged in the Gilt market, contributing to potential instability.

The U.K. faces ongoing current account deficits matched by financial account surpluses, creating structural vulnerabilities in external finances. Global energy price pressures are widening external deficits while fueling inflation, complicating the central bank's policy trade-off between price stability and economic activity.