Bank of England warns further rate hikes 'pose material risk'

MPC member Swati Dhingra spoke on the issue

Cristian Angeloni
clock • 1 min read

Bank of England monetary policy committee member Swati Dhingra has called for a stop to additional rate hikes, as they could have a damaging effect in the medium term.

In her speech given at the Resolution Foundation, Dhingra argued that monetary policy usually takes around a year to affect inflation. And with interest rates having already risen by 390 basis points since December 2021, she is urging a halt to further increases. In the last two monetary policy committee meetings, Dhingra voted against hiking rates. In fact, she was in favour of keeping the Bank rate at 3% in December 2022, and at 3.5% in February 2023, her voting record shows. "Overall, the evidence does not point to persistent cost-push inflation becoming embedded in wages and margi...

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