BOE's Dhingra: I'm not worried about cutting rates too early being the worst thing to do

We took a a long time to get rates upCouple that with the transmission lags, we're still looking at a pretty restrictive period of monetary policy even after you start the moderationFairly convinced that falling prices are not solely driven by energy aloneAt this point, about 97% of annual CPI inflation items have turned downFall in retail sales is pretty convincing and unexpectedNot fully convinced of sharp excess demand in the economy from the consumption sideDoes not see a reason to trade off weak consumption when inflation is on a sustainable path at this pointIf you do the right policy and if you even deviate for the right reasons, people will understandDhingra was the only one to vote for a 25 bps rate cut at the latest policy meeting here. She's saying that she is convinced of a continued decline in inflation and considering the state of consumption activity, a rate cut would be appropriate now. She argues that even with cutting rates early, monetary policy will still be restrictive. This article was written by Justin Low at www.forexlive.com.