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Dhingra Speech Confirms Her Place at Dovish End of MPC Spectrum

BOE

BoE's Dhingra speaks at the Resolution Foundation: https://www.bankofengland.co.uk/-/media/boe/files/...

Little market response to Dhingra speech (generally confirms she lies on the dovish side at the MPC) - her speech mentions interest rates only twice, and both in a historical context, but does flag the risks of 'overtightening':
Speech highlights:

  • Overtightening poses a more material risk at this point
  • It risks unnecessarily denting output at a time when the economy is weak
  • Recent research indicates the persistent scarring effects of deep contractions associated with monetary policy tightening and energy market disruptions

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