In a podcast today, BoE MPC member Swati Dhingra emphasized that “now is the time” to start normalizing interest rates and to “stop squeezing living standards” as the central bank has been doing to curb inflation.
Dhingra pointed out that demand in the UK is too weak for inflation to surge again, noting that inflation returned to 2% in May. She stated, “I don’t see some kind of consumption boom and if we’re going to start moderating from the very high level of interest rate that we are at now… it is going to take some time for that to happen, for us to moderate it as well as for that to then feed into the real economy.”
Known as a dove within the MPC, Dhingra has consistently voted since February to cut the Bank Rate from its 16-year high of 5.25%.
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