Posted By Global Banking and Finance Review
Posted on May 19, 2025
LONDON (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.
(Reporting by William James and Muvija M; Editing by Mark Porter and Edward Tobin)
