The Bank of England’s Monetary Policy Committee (MPC) member Swati Dhingra spoke on inflation in an interview over the weekend. She warned that higher interest rates could lead Britain’s economy into a “deeper and longer recession.”
In contrast with most MPC members who opted for a 75-basis point increase in interest rates, Dhingra voted for a 50-basis point increase last month. She reiterated her less hawkish stance over the weekend, saying that, “a wage-price spiral would mean wages should be above inflation” adding, “given that real wages are falling, that’s indicative that we’re not there at a wage-price-spiral point yet.”
