BoE’s Alan Taylor says case for rate hike not compelling unless energy drives second-round inflation
Alan Taylor said the case for further rate increases will not become compelling unless high energy prices persist and show clearer transmission into broader inflation persistence. He cited minutes from the vote to keep Bank Rate on hold at 3.75% earlier this month.
LONDON, Sept 29 (Reuters) — The case for raising interest rates will not become compelling unless high energy prices translate into clearer signs of second-round inflation effects, Bank of England Monetary Policy Committee member Alan Taylor said on Tuesday. "The case for further rate increases is not compelling to me unless energy prices remain high for an extended period and also generate clearer signals of a transmission into broader inflation persistence," he said in a lecture to Britain's National Institute of Social and Economic Research. 75% earlier this month and seemed further than some of his colleagues from voting for a rate rise.
In minutes of the rate decision, he wrote that he would want to see "clear evidence that second-round effects are en route" before raising interest rates, and that high energy prices alone were no guarantee of that risks would materialise. com; +44 20 7513 4034;)