Investing.com -- Alan Taylor, the most recent appointee to the Bank of England's (BoE) interest rate-setting body, has called for a swift reduction in interest rates in response to indications of an economic slowdown in Britain, according to Reuters, citing a text of speech he was due deliver at Leeds University.
"We are in the last half mile on inflation, but with the economy weakening, it’s time to get interest rates back toward normal to sustain a soft landing," according to Taylor.
"It is this logic that convinced me to vote for an interest rate cut in December."
Over the past year, Taylor noted that the risks associated with inflation have shifted, slowing more rapidly than anticipated over 2024.
While the threats posed by inflation seem to be diminishing, Taylor pointed out the increased likelihood of a downside scenario for Britain's economy.
In his view, even if this is not the base case, it would be appropriate to respond by lowering interest rates.
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