Research shows increased persistence in inflation but also points to a weak growth outlook.Combination of two shocks makes the monetary policymaker’s job harder.In my view, upside risks to inflation through inflation persistence are playing out.Downside risk to demand scenario remains a risk but is not my central case.Inflation persistence scenario implies a significantly tighter path for policy than is embedded in the market curve, not explicitly my view.A more persistent hold on Bank Rate is appropriate right now to maintain the tight monetary policy stance needed to lean against inflation persistence.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 materializing.SUMMARYMann highlighted the dilemma in the current environment with inflation showing greater persistence, even as research also points to a weaker growth outlook. She stressed that upside risks to inflation are currently playing out, with the persistence scenario implying a tighter policy path than markets are pricing (hawkish). While acknowledging that downside risks to demand remain, she noted these are not her central case (more positive on growth). For now, she judged that holding Bank Rate at a restrictive level is appropriate to lean against inflation persistence, but also emphasized readiness to act forcefully with larger and faster cuts if demand risks materialize (keeps the door open for easing if demand falters)..Overall tone: More hawkish, given the focus on inflation persistence, the case for maintaining a tight stance, and her warning that markets may be underestimating the needed policy path — though she left a conditional dovish door open if growth risks deepen.The GBPUSD is trading between the 100 and 200 hour MAs with the 200 hour MA at 1.34944 and the 100 hour MA lower at 1.34624. The current price is higher on the day but between the two technical levels indicative of a more neutral technical view. Visit investingLive.com daily and often (formally forexlive.com) This article was written by Greg Michalowski at investinglive.com.