Swati Dhingra, a member of the Bank of England’s interest rate-setting committee, expressed confidence that inflation in Britain is unlikely to spike again, advocating for a reduction in borrowing costs.

In an interview on The Rest is Money podcast aired on Monday, Dhingra emphasized the need to start normalizing interest rates to alleviate the pressure on living standards caused by previous efforts to lower inflation. Since February, Dhingra has consistently voted to lower the Bank Rate from its 16-year high of 5.25%. Recently, Deputy Governor Dave Ramsden has joined her in this stance, but the majority of their colleagues on the Monetary Policy Committee have opted to keep rates unchanged.

Ahead of the Bank of England’s next scheduled rate announcement on August 1, investors perceive a roughly equal likelihood of a quarter-point rate cut. Dhingra argued that weak demand in Britain makes a resurgence of inflation unlikely, especially after inflation returned to the Bank of England’s 2% target in May.

“I don’t foresee a significant consumption surge,” Dhingra explained. “If we decide to reduce interest rates from their current high levels, it will take time for that moderation to have an impact on the real economy.”