Alan Taylor, a member of the Bank of England’s Monetary Policy Committee, has called for an extended pause on interest rate adjustments, arguing that policymakers should maintain the current benchmark until greater clarity emerges on the economic outlook.
The rate-setter emphasized that the central bank needs more certainty before considering any easing of monetary policy.
75% on Thursday, marking the fourth consecutive meeting where the committee chose to hold steady.
Taylor specifically highlighted the ongoing conflict in the Middle East as a critical variable.
He noted that the Bank should only look toward potential rate cuts if the geopolitical situation calms and energy prices subsequently decline.
This stance underscores the persistent influence of external supply shocks and geopolitical risk on the UK’s monetary policy trajectory.
The comments come shortly after the Bank of England maintained its base interest rate at 3.75% on Thursday, marking the fourth consecutive meeting where the committee chose to hold steady.