BoE’s Taylor: I don't think bigger cuts are necessarily needed or desirable.

Dhwani Mehta FXStreet

Bank of England (BoE) policymaker Alan Taylor is speaking in a panel discussion titled "Central bank communication: current challenges" at the ECB Forum on Central Banking, in Sintra, on Wednesday.

Key quotes

Soft landing on interest rates at risk.

I don't think bigger cuts are necessarily needed or desirable.

Everything has to be taken into consideration, we are not at a preset path on rates.

Starting to see cracks in labor market.

MPC would be well-served by finding a vehicle for communicating its beliefs about future interest rates.

There are many potential ways to convey the estimates of the long-run neutral rate as judged by the various members.

I see greater probability of a downside scenario in 2026 pushing us off track, as demand weakness and trade disruptions build.

Underlying demand-supply balance is quickly shifting as slack opens up.

Estimate the UK neutral real rate to be about 0.75 to 1 percent, putting the neutral nominal rate at around 2.75 to 3 percent.

Quantitative tightening is not on a preset path.

I think five rate cuts are needed in 2025.

Market reaction

At the time of writing, GBP/USD Is trading 0.38% lower on the day near 1.3700, showing little to no reaction to these above comments.

British Pound PRICE Today

The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the weakest against the US Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.27%	0.40%	0.50%	0.05%	0.22%	0.33%	0.18%
EUR	-0.27%		0.09%	0.22%	-0.25%	-0.03%	0.16%	-0.08%
GBP	-0.40%	-0.09%		0.14%	-0.36%	-0.18%	0.05%	-0.20%
JPY	-0.50%	-0.22%	-0.14%		-0.46%	-0.31%	-0.15%	-0.34%
CAD	-0.05%	0.25%	0.36%	0.46%		0.18%	0.39%	0.15%
AUD	-0.22%	0.03%	0.18%	0.31%	-0.18%		0.26%	-0.02%
NZD	-0.33%	-0.16%	-0.05%	0.15%	-0.39%	-0.26%		-0.25%
CHF	-0.18%	0.08%	0.20%	0.34%	-0.15%	0.02%	0.25%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD flirts with weekly highs in the Fed's aftermath

GBP/USD reversed early losses following the Federal Reserve decision to keep rates on hold and neared the 1.3360 level before shedding some ground. Focus shifts to Governor Kevin Warsh's speech, while the Bank of England will announce its monetary policy decision on Thursday.

EUR/USD extends rally pass 1.1450 on Fed's Warsh

EUR/USD trades at fresh weekly highs above 1.1450, following the Federal Reserve monetary policy decision to keep interest rates on hold. The statement showed policymakers remain confident in economic progress while blaming inflation on energy prices. The divided vote among officials put in doubt a September hike, leading to sharp US Dollar losses.

Gold hovers around $4,100 as Fed decision hits the USD

Gold surged following the Federal Reserve's decision to keep the benchmark interest rate unchanged at 3.50%-3.75%. Policymakers noted that inflation remains elevated and that economic activity is expanding at a solid pace despite elevated uncertainty, spurring doubts about a rate hike in September. XAU/USD peaked above $4,100, now battling to retain the level.

No soft target: Warsh vows to return inflation to 2%

The Fed left interest rates unchanged at 3.50%-3.75%, but the decision carried a distinctly hawkish edge as three officials voted for an immediate 25-basis-point increase. Chair Kevin Warsh reinforced that message, insisting there was no tolerance for a softer inflation target and warning that the Fed would not hesitate to act.

How the CLARITY Act unlocks Wall Street’s tokenization pipeline

The United States (US) Digital Asset Market Clarity Act (CLARITY Act), awaiting a full Senate floor vote, promises to unlock Wall Street’s potential to tokenize financial assets, including equities, US Treasuries, private credit, real estate and commodities at a scale that could supercharge the real-world asset (RWA) market from the current $17 billion level to $5.5 trillion by 2030, according to

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.