Keep interest rates at 4% to help UK households, urges Bank of England policymaker

With inflation cooling rate-setter Swati Dhingra says higher borrowing costs pose material risk' to already-weak economy

A senior Bank of England policymaker has said interest rates should be held at 4% amid signs of cooling inflation, rather than adding to pressure on households and businesses with a further rise in borrowing costs.

Swati Dhingra, an external member of the Bank's rate-setting monetary policy committee (MPC), said higher borrowing costs would pose a material risk" to the UK economy.