BoE's Dhingra warns of deeper and longer recession with higher rates

"That is what I think we should all be worried about ... are we going to end up lengthening and deepening the recession if the tightening continues at the pace it is?"

Bank of England rate-setter Swati Dhingra said in an interview published on Saturday that higher interest rates could lead to a deeper and longer recession, adding there were few signs that demands for higher wages risked a wage-price spiral.

"You do see a much deeper and a longer recession with rates being much higher," she told the Observer newspaper. "That is what I think we should all be worried about ... are we going to end up lengthening and deepening the recession if the tightening continues at the pace it is?"

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