Bank of England policy member Mann warns that unemployment fears have contributed to high savings rates

Catherine Mann, a member of the Bank of England's policy committee, has warned that unemployment fears and rising bills are prompting UK households to build "emergency funds" and that economic growth is being constrained by persistent savings rates above pre-epidemic levels. Ms Mann said on Tuesday that growth in some sectors, such as hotels and retail, had "slowed significantly" because of "prudent consumer behaviour". "They are building emergency funds, postponing holidays and putting off big purchases while assessing their financial stability," she said in an interview. "People are saving more than they used to, partly because they fear they could lose their jobs or the cost of living rises," she added.