Taylor Calls for Interest Rate Reduction

Investing.com — Alan Taylor, the newest member of the Bank of England’s (BoE) interest rate-setting committee, advocates for a swift reduction in interest rates due to signs of an economic slowdown in Britain, as reported by Reuters.

> “We are in the last half mile on inflation, but with the economy weakening, it’s time to get interest rates back toward normal to sustain a soft landing,” stated Taylor.

He further emphasized that his reasoning led him to vote in favor of an interest rate cut in December.

Over the past year, Taylor has observed that the risks linked to inflation have shifted, declining more quickly than expected throughout 2024.

Despite the threats from inflation appearing to lessen, he highlighted the rising possibility of a downside scenario for the economy in Britain.

In his opinion, even if this scenario isn’t the expected outcome, it would be fitting to react by lowering interest rates.

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