BoE's Dhingra says that she is worried that high rates would hit investment and lower supply

Dhingra has occupied the dovish tail of the MPC through this tightening cycle, and remarks of this kind from her are consistent with prior form rather than new information about the committee's centre of gravity.

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BoE's Dhingra says that she is worried that high rates would hit investment and lower supply

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Context

The argument itself, that restrictive rates damage investment and future supply capacity, is the classic case for earlier easing and has historically been made by the members who end up dissenting for cuts before the majority moves. The distinction that matters is whether the supply-side framing spreads to the median voter: when only the known doves make it, front-end pricing tends to shrug; when the centre adopts it, the path reprices. Worth noting is that supply-capacity arguments carry more weight late in a cycle, when the debate shifts from the level of inflation to the persistence of the output cost. Follow-ons are the vote split at the next meeting and whether other members echo the language in scheduled appearances. As a single-dove reiteration, the signal is at the margin of the distribution, not its middle.

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