Latest news with #SwatiDhingra
Yahoo
6 days ago
- Business
- Yahoo
Bank of England governor expects interest rates and pay to decrease this year
The governor of the Bank of England said on Tuesday that the trajectory of interest rate cuts is still downwards despite global uncertainties, as members of the Monetary Policy Committee were quizzed in a Treasury Committee meeting. Andrew Bailey said his primary consideration for the most recent rate cut was the question of domestic inflation, with international drivers such as the US's tariff war also an uncertain factor on the bank's horizon. He cited the loosening of the UK's labour market as one key indicator in the bank's most recent decision. The bank is taking the view that it will "see pay decreasing this year," he said, and that the rate path would remain intact based on immediate data and his trips around the country. "Gradual and careful remains my guiding line as it were," he added. Threadneedle street cut interest rates last month by 25bps, with MPC members locked in a three-way split in the vote. Read more: Eurozone inflation cools to 1.9% in May paving way for interest rate cut The Bank's nine-person MPC voted by a majority of five to four to reduce rates by 0.25 percentage points. Two members of the MPC, Swati Dhingra and Alan Taylor, wanted to push through a bigger 0.5 percentage point reduction to interest rates. On the question of future cuts, external MPC member Catherine Mann, who had voted for a 50bps cut in February, said the bank could not yet say how fast or how far it would look to cut. There's a "general view that we don't need to weigh down on living standards as much as we have been," said Dhingra in the hearing. The rationale comes as financial markets increasingly bet on further monetary easing, with pricing indicating that Bank Rate could fall by nearly a full percentage point by the end of the year. That would imply four more quarter-point cuts, a shift from the BoE's earlier stance of 'gradual' policy changes. The next Bank of England meeting is set for 26 June. Read more: FTSE 100 LIVE: Stocks head lower as global growth set to slow this year amid Trump tariffs Trending tickers: Meta, TSMC, BioNTech, Applied Digital and BAT Pound edges lower following economic growth forecast cut
Yahoo
6 days ago
- Business
- Yahoo
Bank of England governor expects interest rates and pay to to decrease this year
The governor of the Bank of England said on Tuesday that the trajectory of interest rate cuts is still downwards despite global uncertainties, as members of the Monetary Policy Committee were quizzed in a Treasury Committee meeting. Andrew Bailey said his primary consideration for the most recent rate cut was the question of domestic inflation, with international drivers such as the US's tariff war also an uncertain factor on the bank's horizon. He cited the loosening of the UK's labour market as one key indicator in the bank's most recent decision. The bank is taking the view that it will "see pay decreasing this year," he said, and that the rate path would remain intact based on immediate data and his trips around the country. "Gradual and careful remains my guiding line as it were," he added. Threadneedle street cut interest rates last month by 25bps, with MPC members locked in a three-way split in the vote. Read more: Eurozone inflation cools to 1.9% in May paving way for interest rate cut The Bank's nine-person MPC voted by a majority of five to four to reduce rates by 0.25 percentage points. Two members of the MPC, Swati Dhingra and Alan Taylor, wanted to push through a bigger 0.5 percentage point reduction to interest rates. On the question of future cuts, external MPC member Catherine Mann, who had voted for a 50bps cut in February, said the bank could not yet say how fast or how far it would look to cut. There's a "general view that we don't need to weigh down on living standards as much as we have been," said Dhingra in the hearing. The rationale comes as financial markets increasingly bet on further monetary easing, with pricing indicating that Bank Rate could fall by nearly a full percentage point by the end of the year. That would imply four more quarter-point cuts, a shift from the BoE's earlier stance of 'gradual' policy changes. The next Bank of England meeting is set for 26 June. Read more: FTSE 100 LIVE: Stocks head lower as global growth set to slow this year amid Trump tariffs Trending tickers: Meta, TSMC, BioNTech, Applied Digital and BAT Pound edges lower following economic growth forecast cutError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Recorder
6 days ago
- Business
- Business Recorder
Bank of England's Dhingra sees downside risks to inflation outlook
Bank of England policymaker Swati Dhingra said on Tuesday that she saw downside risks to the outlook for British inflation, with the recent increases reflecting rising energy bills rather than underlying price pressures. 'On balance, the risks to inflation and growth appear to me to be tilted to the downside,' Dhingra said in her annual report to parliament's Treasury Committee of lawmakers. UK needs tough action on government budget policy, OECD warns 'The most significant contributions to the near-term pickup in headline inflation reflect developments in household energy bills and past energy shocks, and to a lesser degree, regulated price increases, rather than an imbalance in underlying supply and demand pressures.'
Bloomberg
22-05-2025
- Business
- Bloomberg
BOE's Dhingra Says UK Services Industry Was Hit Hard by Brexit
Bank of England rate-setter Swati Dhingra said there was new evidence that Brexit had dealt a bigger blow to Britain's services trade than previously realized. Dhingra said on Thursday that early results from her research showed that UK services firms that were affected by trade barriers erected after Brexit have suffered a 8.5% fall in exports to the European Union relative to other developed countries.
Reuters
19-05-2025
- Business
- Reuters
BoE's Dhingra says her rate decision signalled economic direction
LONDON, May 19 (Reuters) - Bank of England policymaker Swati Dhingra said on Monday her decision to vote for a half-point reduction in the central bank's recent interest rate decision was to make a statement on the direction of the British economy. "I get to pick times when I want to be able to make a more categorical statement about where I think the economy is headed," Dhingra said in a podcast interview to the Financial Times. "If I were to keep doing 100 basis points reductions, I don't think it would have as much impact on how financial markets perceive that reduction," Dhingra added. "I don't think it would be as strong as if I were to use it sparingly, and that's what I've chosen to do." The BoE cut its benchmark Bank Rate by a quarter of a percentage point on May 8. Dhingra was one of two members, alongside Alan Taylor, on the Monetary Policy Committee to vote for a bigger 50 basis point reduction. On Monday, Dhingra also attributed the vote to her wider view on where interest rates should be over the longer term.
