{"id":10711,"date":"2025-01-16T02:21:38","date_gmt":"2025-01-16T02:21:38","guid":{"rendered":"https:\/\/cryptoopia.com\/economy\/10711.html"},"modified":"2025-01-16T02:21:38","modified_gmt":"2025-01-16T02:21:38","slug":"bank-of-englands-taylor-says-its-time-to-cut-interest-rates","status":"publish","type":"post","link":"https:\/\/cryptoopia.com\/economy\/10711.html","title":{"rendered":"Bank of England's Taylor says it's time to cut interest rates"},"content":{"rendered":"

By Andy Bruce<\/p>\n

LEEDS, England (Reuters) -The Bank of England should move quickly to bring down interest rates given signs of a slowdown in Britain’s economy, Alan Taylor, the BoE’s most recently appointed interest rate setter, said on Wednesday.<\/p>\n

Taylor, an economics professor, voted to cut rates in November – when Bank Rate was cut to its current level of 4.75% – and again in December when the Monetary Policy Committee majority left it unchanged. <\/p>\n

“We are in the last half mile on inflation, but with the economy weakening, it\u2019s time to get interest rates back toward normal to sustain a soft landing,” Taylor said in the text of a speech he was due deliver at Leeds University.<\/p>\n

“It is this logic that convinced me to vote for an interest rate cut in December.”<\/p>\n

The BoE has reduced its benchmark Bank Rate twice since August – less than other central banks – and it has stressed it is likely to move gradually on further interest rate cuts, given persistent inflation pressures in Britain’s economy. <\/p>\n

Taylor said he thought the risks around inflation had shifted in the last 12 months, by slowing more quickly than expected over 2024.<\/p>\n

Sterling fell against the dollar around the time Taylor’s speech text was published, losing about a third of a cent.<\/p>\n

Data published earlier on Wednesday showed Britain’s headline rate of inflation slowed to 2.5% in December, down from 2.6% in November, and underlying measures of price growth watched closely by the BoE cooled more quickly.<\/p>\n

\"\u00a9<\/p>\n

Taylor said that while the risks posed by inflation appeared to be fading, the possibility of a downside scenario for Britain’s economy had increased and, even if it was not his base case, it was appropriate to cut rates in response.<\/p>\n

“Right now, I think it makes sense to cut rates pre-emptively to take out a little insurance against this change in the balance of risks, given that our policy rate is still far above neutral and would still remain very restrictive,” he said.<\/p>\n

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