top of page

BoE policymaker in recession and rates warning


BoE policymaker in recession and rates warning

Bank of England rate-setter Swati Dhingra has warned that higher interest rates could lead to a deeper and longer recession. Ms Dhingra, who last month called for half-percentage-point increase in interest rates while most of her colleagues opted for a 75 basis-point increase to 3%, said the Bank could deepen an expected recession if it pushed up borrowing costs further. She has warned that “you do see a much deeper and a longer recession with rates being much higher."


Ms Dhingra, a member of the Bank’s Monetary Policy Committee, also suggested that there were few signs that demands for higher wages risked a wage-price spiral, highlighting that while a wage-price spiral would mean wages coming in above inflation, real wages are currently falling. Noting Bank of England surveys suggesting a fall in investment and employment over the next two years, she warned: “The economic slowdown is here."


Read more: The Observer

Visit Our Website Here To Apply & Learn More


 


Explore Your Finance Options Here.

 


Log into your account here, or click here to sign up for Free!


Visit our website for more news and product information, or click the button below to submit a short enquiry form for your finance needs.



Comentários


bottom of page