Bank of England Monetary Policy Committee member Swati Dhingra said on Monday that inflation in the United Kingdom was unlikely to rise sharply again and the UK central bank should bring down borrowing costs.
Key quotes
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.
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.
Demand is too soft for inflation to rise sharply.
Now is the time to start normalising interest rates so we can finally stop squeezing living standards.
Market reaction
At the time of writing, GBP/USD is trading at 1.2965, losing 0.17% on the day.
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