In an op-ed published in The Times, Bank of England (BoE) policymaker Swati Dhingra argued that shocks driving the UK’s high inflation will fade and that they should not be overly cautious about cutting interest rates.
Dhingra further added that the UK is not suffering from more food inflation than it’s peers and noted that earnings play a smaller role in the services’ Consumer Price Index (CPI).
Market reaction
These comments received a dovish score of 2.0 from FXStreet BoE Speech Tracker. Nevertheless, GBP/USD clings to daily recovery gains near 1.3400 in the Americn session.
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