BoE’s Dhingra says restrictive policy risks ‘scarring’ economy

MPC member warns that focusing on pay and services inflation could lead to “overtightening”

Swati Dhingra
Swati Dhingra
Bank of England

The Bank of England (BoE) risks “scarring” the UK economy if it keeps interest rates at their current level, Swati Dhingra has warned.

The monetary policy committee (MPC) member was the sole policy-maker to vote for a rate cut at the BoE’s February meeting. In a speech on February 21, Dhingra challenged the arguments her colleagues had used to defend higher rates – a stance she labelled “overtightening”.

“The evidence to err on the side of overtightening is not compelling in my view, as it often

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