Bank of England Monetary Policy Committee member Swati Dhingra said on Friday that she believes the British central bank should be easing policy more, given the weak consumption, weak investment, and possible damage to supply capacity.
The rate-setter noted that monetary policy in the UK is very restrictive, weighing on living standards, supply capacity and investments. She also stated there is no reason to disagree with the market view that the neutral rate is around 2.50%-3.50%.
Dhingra admitted that she observes that wage pressures have eased and services continue to moderate, suggesting that the Bank Rate should follow suit.
Additionally, the official highlighted that tariffs could lead to a return of supply chain disruption as seen in recent years, though the UK has limited direct exposure to U.S. tariffs.