In an op-ed for The Times, Bank of England (BoE) policymaker Swati Dhingra argued that the shocks driving the UK’s elevated inflation will eventually fade, warning that policymakers should not be overly cautious about cutting interest rates.
Inflation dynamics and policy view
Dhingra noted that the UK is not experiencing disproportionately higher food inflation compared with peers and highlighted that wages play a smaller role in services-sector Consumer Price Index (CPI) pressures. Her remarks reinforced her dovish stance within the Monetary Policy Committee (MPC), signaling support for earlier rate cuts once inflationary shocks subside.
Market reaction
According to FXStreet’s BoE Speech Tracker, Dhingra’s comments received a dovish score of 2.0. Despite the soft tone, GBP/USD held onto its intraday recovery gains, trading near 1.3400 in the American session.
