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BOE's Dhingra Warns High Rates May Deter Investment and Weaken Supply
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Bank of England Monetary Policy Committee member Swati Dhingra expressed concern that persistently high interest rates could negatively impact investment and reduce overall supply in the economy. The statement, reported by financial news outlet Jin10, highlights a dissenting or cautionary view within the central bank regarding the potential long-term costs of maintaining a restrictive monetary policy stance. Dhingra's remarks suggest that while the BOE has been raising rates to combat inflation, there is a risk that the policy could stifle economic growth by discouraging business investment and constraining productive capacity. The comment adds to the debate over the appropriate pace and endpoint of the current tightening cycle, as policymakers weigh the need to control price pressures against the risk of damaging the economy's supply side.
Source report
London – Bank of England Monetary Policy Committee (MPC) member Swati Dingra has expressed concerns that persistently high interest rates may negatively affect business investment and ultimately reduce supply in the economy.
In her latest remarks, Dingra warned that elevated borrowing costs could discourage firms from investing in capacity expansion and productivity improvements, potentially weakening the economy's long-term supply potential.
The comments highlight ongoing debates within the MPC over the appropriate pace and level of monetary tightening as the central bank continues to navigate inflation pressures alongside risks to economic growth.
Source
金十数据Neutral / independent
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BoE’s Dhingra warns high rates risk investment, sees no need for panic on inflation