Bank of England ratesetter Alan Taylor has called for a more aggressive pace of interest rate cuts in 2025, warning that global trade disruptions and weakening demand pose a growing threat to the UK’s economic outlook.
Speaking at the European Central Bank Forum in Portugal, Taylor argued that rates should be lowered five times next year, rather than the market-expected four.
He expressed concern that the path towards a soft landing for the economy was at risk, with a higher chance of downside scenarios in 2026.
Taylor, an external member of the Monetary Policy Committee, was outvoted in June when he advocated for a quarter-point cut, following his earlier push for a larger reduction in May.