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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Trump's presidency and tariffs: Advice industry shares views

Trump's presidency and tariffs: Advice industry shares views

‘Stark raving mad’ but ‘great’ for US firms

Isabel Baxter
clock 18 February 2025 • 4 min read
Five-fold surge in advisers buying gilts for clients in 2024

Five-fold surge in advisers buying gilts for clients in 2024

AJ Bell finds 436% increase in gilt purchases on its Investcentre

Isabel Baxter
clock 10 February 2025 • 1 min read
Bank of England cuts interest rates by 25bps to lowest level in 18 months

Bank of England cuts interest rates by 25bps to lowest level in 18 months

First MPC meeting of the year

Sorin Dojan
clock 06 February 2025 • 3 min read