MNI BRIEF: BOE Dhingra: Shouldn't Be Too Cautious On Rate Cuts

The Bank of England's Monetary Policy Committee should not be "overly cautious about cutting interest rates" as the UK's relatively high inflation reflected temporary factors, external member Swati Dhingra said Friday.

Writing in The Times, Dhingra said that the UK's higher inflation levels compared to other European countries were largely a factor of commodity shocks and administered prices and that it was possible to cut rates further without endangering the inflation target.

She cited increases in water bills and bus fares as examples of administered prices which have driven up inflation and she said that they could "afford to cut (interest) rates." Dhingra was one of two members of the nine member MPC to vote for a rate cut at the September meeting. (see MNI BOE WATCH: Bank Holds Rates But Pares Scale Of Annual QT )