A Bank of England rate setter said UK interest rates will need an "earlier and faster reversal" to avoid inflation falling well below its 2% target.
Speaking at the SES annual conference Monetary Policy Committee member Silvana Tenreyro suggested the Bank had pushed rates too high to 4.25%.
She said as the effects of the large and rapid tightening come through in 2023 and 2024 this is likely to drag demand well below its potential, loosening the labour market and pulling down inflation.
She believes a looser stance is needed to meet the inflation target in the medium term.
In general, a looser stance can be achieved either through lower Bank Rate today, or through lower Bank Rate in future, which leads to a lower market curve.
A lower market curve would then lower lending rates and loosen financial conditions today, she added.
Tenreyro has consistently argued against rate rises at the MPC’s monthly meetings.