Full force of interest rate hikes is yet to be felt, says Bank of England official

Swati Dhingra, a member of the Bank’s monetary policy committee, said she was concerned we were ‘going to have to pay a higher cost than we should be paying’. Photograph: Richard Gardner/Shutterstock

The economy has flatlined and only a quarter of the impact from the Bank of England’s 14 consecutive increases in interest rates has fed through, according to one of its policymakers.

Swati Dhingra, a member of the central bank’s rate-setting monetary policy committee (MPC), said the full force of the steep rise in borrowing costs to 5.25%, after years of cheap loans and low mortgage rates, was only just beginning to hit household incomes.