Bank of England policy-maker Swati Dhingra warned today (March 8) of the possible harm the central bank could inflict by raising the policy rate too far.

Dhingra – who has voted against recent rate increases – noted the UK has suffered the worst terms of trade shock since the monetary policy committee was formed, making it hard to interpret.

However, she noted the majority of inflation is still being driven by cost pressures, notably energy prices and the increased cost of other imports. A key