Swati Dhingra, a member of the Bank of England‘s Monetary Policy Committee, emphasized on Monday that inflation in the United Kingdom is unlikely to see a sharp increase, suggesting it’s time for the central bank to reduce borrowing costs.
Dhingra stressed the need to normalize interest rates to alleviate the pressure on living standards that has persisted in the effort to curb inflation. She remarked, “Now is the time to start normalising (interest rates) so we can then finally stop squeezing living standards the way we have been to try and get inflation down.”
She also noted that the current high level of interest rates could gradually be moderated, although she anticipated this adjustment would take time to manifest in the real economy due to subdued demand conditions. Dhingra added, “Demand is too soft for inflation to rise sharply.”
In response to Dhingra’s comments, the GBP/USD pair was trading at 1.2965, showing a 0.17% decline on the day at the time of writing.
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