BOE's Taylor: Rate Hold Correct
BOE's Taylor says an extended hold at current rate level is the correct policy response
If more slack opens up quickly as in BOE's Scenario 'A', we may end up having to cut quickly and might even see bank rate below neutral for a while - - In the worst case inflationary scenario, nothing would be off the table, BOE would have to do what it must to defend the nominal anchor - - We entered this shock with a very weak economy - - People can wrongly assume that the middle scenario is most likely