Eos Energy announces stock offering to fund convertible note buyback
Investing.com -- Bank of England policymaker Swati Dhingra stated Tuesday that interest rates should be reduced to their neutral level "fairly soon."
Dhingra was among four members of the nine-person Monetary Policy Committee who voted to lower interest rates from the current 4.0% this month, while the majority opted to maintain the current rate.
In explaining her vote, Dhingra indicated that monetary policy is currently too restrictive and that rates should have already been reduced to address weak economic demand forecasts.
"I think we should be getting to (the neutral rate of interest) fairly soon, for the reason that we would still expect the tightness to persist for another year and a half," Dhingra said during a presentation to students at the University of Sheffield.
Rather than speculating on the current neutral rate, Dhingra emphasized she would base her decisions on economic data.
When asked about her focus in the official inflation figures scheduled for release Wednesday, Dhingra mentioned she would be looking for continued disinflation in the services sector and confirmation that recent food price increases were not spreading across different product categories.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.