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BoE's Dhingra says her rate decision signalled economic direction
Published by Global Banking & Finance Review®
Posted on May 19, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on May 19, 2025
2 min readLast updated: January 23, 2026
BoE's Swati Dhingra voted for a larger rate cut to signal the UK's economic direction, emphasizing a strategic approach to interest rate changes.
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)
The main topic is Swati Dhingra's vote for a larger interest rate cut to signal the direction of the UK economy.
Dhingra voted for a larger rate cut to make a stronger statement about the economic direction and to influence market perceptions.
The BoE recently cut its benchmark Bank Rate by a quarter of a percentage point, with Dhingra advocating for a larger cut.
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