The Bank of England rate-setter is urging calm over inflation concerns while pushing again for lower interest rates.
Speaking to the Financial Times, Monetary Policy Committee member Alan Taylor dismissed the recent uptick in inflation as a result of temporary factors, rather than a sign of deeper economic pressure. He also warned that escalating global trade tensions — particularly President Trump’s tariff measures — could weigh heavily on Britain’s financial outlook.
Taylor, who backed a 0.5 percentage point rate cut earlier this month, remained open to further easing. When asked if he’d support another cut at the June meeting, he told the FT: “I’m not going to pre-emptively announce my vote, but I think I indicated in my dissent that I thought we needed to be on a lower [monetary] policy path.
I’m seeing more risk piling up on the downside scenario because of global developments…[the impact of Trump’s tariffs on imports would] be building up over the rest of this year in terms of trade diversion and drag on growth”.
But despite a sharp 3.5% jump in inflation in April, MPC member Alan Taylor insists the spike is no cause for alarm. Speaking to the Financial Times, he said the rise was largely driven by expected changes, such as the energy price cap adjustment and increases in regulated water bills.
“There’s an inflation hump coming — and then it fades,” Taylor told the FT. “This isn’t being driven by demand and supply imbalances. It’s mostly the result of one-off tax changes and price controls.”
