Bank of England’s Swati Dhingra says winter will clarify Iran war inflation pressures

  • Swati Dhingra said winter should clarify Britain’s long-term inflation pressures from the Iran war.
  • 2022 saw broad-based price increases after energy costs rose following Russia’s invasion of Ukraine.
  • Dhingra has recently voted with the Monetary Policy Committee majority to keep borrowing costs unchanged.

Bank of England interest rate-setter Swati Dhingra said the extent of long-term inflation pressures in Britain stemming from the Iran war should become clearer over the coming winter months. She said Britain was not seeing the broad-based price increases experienced in 2022, when energy prices surged after Russia’s full-scale invasion of Ukraine, while the jobs market is now weaker. Dhingra said winter energy pricing, wage settlements and financial-market pricing would provide important signals. She was previously among the strongest advocates of lowering borrowing costs as the Bank of England cut rates, but has more recently voted with the majority of the Monetary Policy Committee to keep borrowing costs unchanged.

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