For months, Swati Dhingra has been the lonely voice on the Monetary Policy Committee, often voting to cut rates while her colleagues voted to hike or hold. With the decision to cut to 3.75%, the rest of the committee has finally moved in her direction. Her persistent warnings about “over-tightening” and the risk of an “economic downturn” have been vindicated by the dismal 0.1% GDP contraction.
Dhingra, an external member, brings a different perspective to the Bank. She has focused heavily on the supply-side damage caused by high rates—how they destroy businesses and permanently lower the UK’s potential. Her vote to cut was joined by Alan Taylor, forming a “growth bloc” that managed to sway the Governor.
Her victory is significant because it shifts the intellectual center of gravity at the Bank. It signals that the risk of recession is now treated as seriously as the risk of inflation. Dhingra has argued that inflation was largely driven by external shocks (energy, food) that would fade on their own, a view that the drop to 3.2% seems to support.
However, her critics argue she is too dovish. If inflation roars back in 2026, her strategy will be blamed. But for now, with the economy shrinking and confidence low, Dhingra’s arguments look prophetic. She identified the breaking point of the economy before the data made it obvious.
As 2026 unfolds, Dhingra’s influence will be key. If she pushes for “quickfire” cuts as the TUC demands, she could become the architect of a rapid recovery—or an inflationary disaster. She is the dove who finally got her way.