BoE’s Dhingra says economy has ‘already flatlined’ – BBC

FILE PHOTO: A general view of the Bank of England in the City of London, Britain, September 25, 2023. REUTERS/Hollie Adams/File photo

(Reuters) – Bank of England policymaker Swati Dhingra said the economy has already flatlined and about 20% or 25% of the impact of interest rate hikes has fed through to the economy, in an interview with the BBC.

A narrow majority of the BoE’s Monetary Policy Committee voted last month to hold interest rates, halting a run of back-to-back increases in borrowing costs since December 2021.

“If growth falls by much more than it expects from here, a cut may happen sooner,” she added.

She also said that higher interest rates could ultimately hit younger workers and those on lower incomes the hardest.

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