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BoE’s Dhingra warns against further tightening as inflation eases

Dhingra argued financial conditions have already done much of the tightening, while medium term inflation expectations remain broadly in line with the Eurozone.

Reported · Written up by our desk · Central Banks

Bank of England Monetary Policy Committee member Swati Dhingra took a dovish tone, pointing to signs that UK price pressures are easing and that the labour market is weak, according to FXStreet citing Reuters.

Dhingra played down worries about longer run inflation, saying UK medium term inflation expectations are broadly similar to those in the Eurozone and not a reason for alarm. She also emphasized that financial conditions have already done much of the tightening, supporting a preference for patience rather than additional aggressive action.

The remarks acknowledge that winter energy prices remain a key factor for potential second round effects, but FXStreet noted the overall balance of risks is tilted more toward growth than renewed inflation. Dhingra also said she would not be surprised if AI eventually helps lower services inflation.

FXStreet added that the comments had little immediate impact on the British pound, with GBP/USD down 0.08% on the day to about 1.3230 at the time of writing.

Latest closeGBP/USD 1.323 ▼0.8%

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