Technical Analysis

Bank of England’s Dhingra on inflation: “we’re not there at a wage-price-spiral point yet”

Bank of England Monetary Policy Committee member Swati Dhingra in an interview over the weekend:

warned that higher interest rates could lead to a deeper and longer recession … “That is what I think we should all be worried about … are we going to end up lengthening and deepening the recession if the tightening continues at the pace it is?”

Dhingra voted for a 50bp increase in interest rates last month, contrasting with most other MPC members opting for +75bp, she reiterated her less hawkish stance in the interview:

  • “A wage-price spiral would mean wages should be above inflation”
  • “Given that real wages are falling, that’s indicative that we’re not there at a wage-price-spiral point yet.”

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