Bank of England's Dhingra says rates should come down now

Bank of England rates: Bank of England interest rate-setter Swati Dhingra said inflation in Britain was unlikely to rise sharply again and central bank should bring down borrowing costs.

"Now is time to start normalising (interest rates) so we can n finally stop squeezing living standards way we have been to try and get inflation down," Dhingra told Rest is Money podcast in an interview brocast on Monday.

Dhingra has voted since February to cut Bank Rate from its 16-year high of 5.25 per cent and she has been joined more recently by Deputy Governor Dave Ramsden. But ir seven or colleagues on Monetary Policy Committee have kept rates on hold.

Investors see a roughly 50-50 chance of BoE cutting rates by a quarter of a percentage point on Aug. 1, date of its next scheduled announcement on rates.

Dhingra said demand in Britain was too weak for inflation to take off again having returned to BoE's 2 per cent target in May.

"I don't see some kind of consumption boom and if we're going to start moderating from very high level of interest rate that we are at now...it is going to take some time for that to happen, for us to moderate it as well as for that to n feed into real economy," she told podcast.