Bank of England policy committee member Mann warns: Concerns about unemployment lead to high savings rate

Catherine Mann, a member of the Bank of England's policy committee, warned that worries about unemployment and rising bills are prompting British households to build "emergency funds," with economic growth constrained by savings rates persistently 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." She said in an interview, "They are building up emergency funds, delaying holidays and deferring major purchases, while assessing their own financial stability." She added, "People's savings rates are higher than before, partly because they are concerned about potential unemployment or rising living costs."