Swati Dhingra, a member of the Bank’s Monetary Policy Committee (MPC), argued there was no need to be “overly cautious” about lowering borrowing costs. “With prices for services and food rising more quickly than in the major eurozone countries, inflation looks like a particularly British problem.”But she said that was not the case and that the factors putting pressure on UK inflation “will fade”. In 2026, the overall inflation rate will be the second highest in the G7, behind only the US, according to its forecasts. “The difference in inflation between the UK and our continental neighbours can be largely explained by administered prices and global commodity shocks. Ms Greene said a “cautious approach to rate cuts going forward” was appropriate in the face of “uncertainty and risks” to the economy.
