Bank of England policymaker Mann warns: Unemployment concerns keep savings rates high
Catherine Mann, a member of the Monetary Policy Committee (MPC) of the Bank of England, warned that concerns about unemployment and rising bills are prompting UK households to establish "emergency funds," with economic growth constrained by a savings rate that remains higher than pre-pandemic levels. Mann said on Tuesday that growth in certain industries such as hotels and retail is "significantly slowing" due to "cautious consumption behavior." In an interview, she said, "They are accumulating emergency funds, postponing holidays, and deferring large purchases while assessing their financial stability." She added, "People's savings rates are higher than before, partly because they are worried about possible unemployment or rising living costs."
