BOE's Dhingra: There is now a risk of over-tightening

The BOE is being put to the test in every way.

The government has flip-flopped on policy and the new bent towards austerity should help to cool demand but the timing is tough to predict. Higher rates will work but at 3.00% currently, they're not terribly restrictive. Inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term is running at 11% and the currency is a dog this year. Energy has cooled but it that may only be temporary.

So there's a risk of over-tightening but it's one of many risks.

Other comments:

• Undeniable that the UK is seeing a bigger slowdown in trade than the rest of the world
• UK seeing a really strong stagnation in the services trade